Qdoba Franchise Cost WORTH Owner Profits? (2022)



Qdoba Mexican Eats is a fast-casual Mexican-themed restaurant. Qdoba offers a wide variety of menu options that range from burritos to Tacos and Quesadillas. All menu items are made to order and are in a tiered pricing structure giving customers flexibility. Most Qdoba locations also offer catering services, which helps expand revenue streams. Customers can also place online mobile ordering through the corporate-operated App and website.

This video was based on an exclusive Vetted Biz analysis, click here for the full report:

Qdoba Franchise Cost Worth Owner Profits? (2022)

Want to have a franchise specialist support you day-to-day in your franchise search/ analysis? Click here for more information:

How We Help Franchise Buyers Find The Right Franchise

00:00 Introduction
00:12 About Qdoba
01:52 Qdoba Franchise Fees
02:03 Initial Investment Cost
02:28 Minimum Net Worth Required
02:54 Franchise Owner Salary
03:19 Franchise Sales
04:03 Franchise Payback Period
04:40 Qdoba Franchise Stores
04:56 Conclusion

#QdobaFranchise #VettedBiz

Qdoba is a subsidiary company of Quidditch Acquisition, a Delaware Corporation, that acquires and operates restaurant chains. The Qdoba directors are from a variety of investors and food service professionals. Anthony Miller and Partner Robert Hauser first started Qdoba in 1995 in Denver Colorado. Miller was a financial professional at Merrill Lynch and Hauser was in culinary school. They pooled their resources together to start Zuma Fresh Mexican Grill, which later turned into the Qdoba.

Today Andrew Jhawar serves as the Chairman of the Board and is a Senior Partner at Apollo Management. He has also served in pivotal roles in other major companies such as Michaels. At the end of 2021, Qdoba had a total of 739 outlets. 333 of these locations are corporate-owned, and 406 are franchises.

The industry average royalty fee is 5.3% and 2.3% for the marketing fee. Furthermore, there is a 15.5% growth rate in food and beverage. This is the largest sector in the franchise world as it makes up 36% of all franchises. The industry is broad and you can expect to pay $3,000 for a small kiosk up to $6,732,615 for a full-service restaurant. Food and beverage franchises also make up over 5% of the entire U.S. Gross Domestic Product.

Qdoba itself charges a 5% royalty fee, 1.25% marketing fee, and 1.75% local marketing fee. This means that Qdoba’s primary fees are on par with industry trends. To open a Qdoba location you must expect to pay between $252,800 to $816,700 for a non-traditional and $476,800 to $1,096,700 for a traditional. By comparison, the leading competitor Chipotle, which does not franchise, would cost between $800,000 to $2,000,000 if you were to open a franchise. Additionally, Chipotle currently operates 2,768 restaurants making the Mexican fast-casual space very competitive.

The initial company franchise fee is $30,000 and must be paid upfront.

While Qdoba is less expensive to open than leading competitor Chipotle it is one of the more expensive Mexican-themed restaurant franchises. Rusty Taco, a smaller chain, costs between $532,000 – $897,000 to open. Meanwhile, Taco Bell, another national competitor, costs between $253,000 – $590,0000 to open. Qdoba, while an expensive franchise, has national brand recognition and is still fairly priced within Food and Beverage.

Once again, you can expect to pay between $252,800 to $816,700 to open a non-traditional Qdoba and $476,800 to $1,096,700 for a traditional location.

Franchisees must have a minimum net worth of $100,000. If an individual lacks this they must negotiate terms that will meet the proper financing obligations. Franchisees must also be prepared to pay a renewal fee of $5,000 or 15% of the current franchise fee. Additionally, all potential franchisees must not have or be facing any criminal or civil charges. All Qdoba’s must participate in the rewards programs and purchase all company-mandated technologies and ingredients.

Ongoing Fees:

Royalty Fee: 5%

Marketing Fee: 1.25%

Local Marketing Fee: 1.75%

POS: $20,000 – $30,000 and then ongoing software fees.

A Qdoba Franchise owner of a traditional location can expect an EBITDA of roughly $171,251 annually as that is the company’s median EBITDA for their 333 locations. It is important to remember that these are for company-owned locations meaning franchisees may have an EBITDA slightly above or below this median. The median net sales for a traditional location is $1,260,746. The low is $717,563 and the high is $1,855,210.

This video was based on an exclusive Vetted Biz analysis, click here for the full report:

Qdoba Franchise Cost Worth Owner Profits? (2022)

Want to have a franchise specialist support you day-to-day in your franchise search/ analysis? Click here for more information:

How We Help Franchise Buyers Find The Right Franchise



Source