Pancheros Franchise: The Costs, Fees and Profit in The Investment

REPORTED COST TO GET IN: $680,500 – $1,387,500

REPORTED ROI (Item 19): $1,527,107 (Average Gross Sales 2023)

Pancheros offers customers a large selection of ingredients to choose from for customized burritos, bowls, salads and more.

Founded in 1992, Pancheros has built a reputation for its simple yet effective business model, focusing on fresh ingredients and straightforward cooking techniques. The brand has over 30 years of experience in the growing Mexican fast-casual industry.

Pancheros currently has 73 locations across the U.S., 47 of which are franchises.

Franchise details

Pancheros offers customizable order-at-the-counter burritos and other Mexican fare. The brand also has online ordering options, as well as an app where consumers can gain loyalty rewards for their purchases. Franchisees also benefit from multiple revenue streams with dine-in, take out and catering options.

According to Item 19 of Pancheros 2024 Franchise Disclosure Document (FDD), the average gross sales across all 73 restaurants in 2023 were $1,527,107. Average gross sales for the 47 franchised units were $1,496,658.

Investment costs

The total initial investment necessary to begin operation of a Pancheros franchise ranges from $680,500 to $1,387,500. These costs break down as follows:

• Initial Franchise Fee: $30,000

• Real Estate/Rent and Security Deposit: $0 - $30,000

• Utility Security Deposits: $0 - $5,000

• Leasehold Improvements: $378,000 - $750,000

• Furniture, Fixtures and Equipment: $165,000 - $210,000

• Initial Merchandise Purchases: $2,000 - $5,000

• Initial Inventory: $8,500 - $15,000

• Insurance: $3,500 - $17,000

• Training: $5,000 - $15,000

• Initial Marketing Campaign: $30,000 - $50,000

• Signage: $10,000 - $38,000

• POS System and Back Office Software: $13,500 - $18,000

• Office Equipment/Supplies: $3,000 - $7,000

• Licenses and Permits: $1,000 - $7,500

• Professional Fees: $6,000 - $40,000

• Additional Funds (3 Months): $25,000 - $150,000

The franchise fee required to begin operation of a Pancheros franchise is $30,000, which must be paid to the franchisor.

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