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Frequently Asked Questions
Is previous experience in the restaurant industry necessary? |
No! Restaurant experience can be an asset or an obstacle. The important factor is to be flexible and to be able to adapt to the organizational, operational and marketing training from Mucho Burrito.
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What steps are involved in obtaining a Mucho Burrito franchise? |
If you are interested in becoming a franchisee please call 905-820-7887 or 1-888-729-7482 and set up an appointment with a franchising representative.
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What is my Initial Investment? |
The initial franchise fee for the first restaurant is $20,000.00.
Unlike many other franchises in Canada the start-up costs of establishing a Mucho Burrito™ franchise are reasonable. Below is our estimate of the approximate Initial Investment of opening your own Mucho Burrito™ franchise:
| Break-Down For |
(in CDN $) |
|
Lower Cost Store |
Higher Cost Store |
| Initial Franchise Fee |
$20,000 |
$20,000 |
| Travel & Living Expenses While Training |
500 |
3,500 |
| First Month Rent & Lease Deposit (*) |
2,500 |
10,000 |
Real Estate Brokerage Fees
(if applicable) |
0 |
5,000 |
| Leasehold Improvements |
80,000 |
150,000 |
| Equipment & Furniture |
60,000 |
90,000 |
| Freight Charges |
300 |
5,000 |
| Interior and Exterior Signage |
7,500 |
35,000 |
| Architectural Design and Mechanical Fee |
3,000 |
7,000 |
| Opening Advertising Materials |
7,500 |
7,500 |
| Opening Inventory |
5,000 |
7,500 |
| Deposits - Phone, Utilities |
1,000 |
5,000 |
| Municipal and/or Provincial Permits and Licenses |
0 |
2,000 |
| Alcohol Permits and Licenses |
0 |
3,000 |
| Professional Fees |
1,500 |
4,000 |
| Software and Hardware |
500 |
3,000 |
| Cash Register Service Fees (monthly) |
0 |
100 |
| Working Capital |
5,000 |
15,000 |
| Uniforms |
500 |
1,500 |
| Security System and Safe |
0 |
3,500 |
| TOTAL INVESTMENT |
$194,800 |
$377,600 |
The difference between low or high investment levels exist because of varying restaurant sizes, construction costs, and real estate costs.
The typical cost of the following items: Franchise Fee, Leasehold Improvements, Equipment & Furniture Package, Freight Charges, Architectural Design & Engineering Fee, and Exterior Signage is between $170,500 and $302,000.
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First Month Rent & Deposit: This amount represents the estimated deposit of 2 months rent payable to your landlord upon the signing of the Offer to Lease.
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(THE ABOVE-NOTED FIGURES ARE ESTIMATES ONLY OF YOUR INVESTMENT IN ESTABLISHING A MUCHO BURRITO™ RESTAURANT. IT IS POSSIBLE THAT THE ACTUAL COSTS MAY SIGNIFICANTLY EXCEED SOME OR ALL OF THE COSTS IN ANY OF THE AREAS LISTED ABOVE.
Some costs will vary in relation to the physical size of the restaurant, location, area, landlord design criteria and contractor pricing in each area. A lower cost restaurant is one that would require fewer leasehold improvements, less seating and fewer equipment expenditures. Moderate and higher cost restaurants may require extensive interior renovations, extensive seating and additional equipment. If you are purchasing a restaurant for another location opportunity, such as a non-traditional, satellite or school location, the above listed capital requirements may vary considerably and could be substantially lower depending upon the necessary equipment you must acquire or changes in leasehold improvements you must make. The above figures do not include extensive exterior renovations, provincial sales tax, value-added tax, including the goods and service tax, or any other tax.
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What does the Initial Franchise Fee buy? |
The initial franchise fee for the first restaurant is $20,000.00.
The initial franchise fee secures the right to own and operate a Mucho Burrito™ franchise in a given territory and the use of Mucho Burrito™ trademarks, trade name, recipes and retail marketing scheme. We also provide:
- site selection, lease negotiation;
- administrative systems;
- comprehensive training program consisting of classroom instruction and practical restaurant experience;
- assistance from franchise operations experts for pre and post-opening of Restaurant;
- financing is available to qualified purchasers.
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How much money is required? |
| In order to obtain financing from a chartered bank or trust company you must have at least 30-35% of the purchase price as an unencumbered cash down payment. |
Are partnerships allowed? |
Yes, two or more persons may join forces to purchase a single franchise.
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What is the royalty fee? |
| The royalty fee is 5% of sales payable to Mucho Burrito™ on a weekly basis. |
What is the advertising fee? |
| The advertising fee is 4% of sales payable to Mucho Burrito™ on a weekly basis. |
What is the average size of a Mucho Burrito Restaurant? |
| The typical size of a Mucho Burrito™ Restaurant is 1,300 sq. ft. to 1,800 sq. ft.; however, larger or smaller restaurants are an option. Mucho Burrito™ restaurants are usually located in neighborhood and community strip centres, power centres, shopping malls, universities, airports and downtown business districts. |
How much money can I make from a Mucho Burrito investment? |
| Since actual results of individual franchises are based on factors not within the control of Mucho Burrito™, we do not provide estimates of profits or revenues. However, after consulting with Mucho Burrito™ franchise representative and reviewing our disclosure document, you will have the opportunity to contact our existing franchisees regarding their experiences. |
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