In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Pancheros Mexican Grill franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Pancheros Mexican Grill franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Pancheros Mexican Grill outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Pancheros Mexican Grill franchise opportunity

Section V – Presentation and analysis of Pancheros Mexican Grill’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, high, and low gross sales for the 47 franchised, 26 affiliate-owned, and all 73 Pancheros Mexican Grill restaurants in operation for the full calendar year 2023

• 2023 average, median, high, and low gross sales for the 42 franchised, 25 affiliate-owned, and all 67 Pancheros Mexican Grill restaurants in operation for three full calendar years from 2021 to 2023

• 2023 average, median, high, and low food costs and paper costs for the 26 affiliate-owned Pancheros Mexican Grill restaurants in operation for the full 12 months of 2023

Section VI – Key ratios, comparables, computations, and analyses for the Pancheros Mexican Grill franchise opportunity (exclusive content for Platinum subscribers)

Section I – Pancheros Mexican Grill Franchise Costs

• Initial Franchise Fee:  $30,000
• Real Estate/Rent and Security Deposit:  $0 to $30,000
• Utility Security Deposits:  $0 to $5,000
• Leasehold Improvements:  $378,000 to $750,000
• Furniture, Fixtures, and Equipment:  $165,000 to $210,000
• Initial Merchandise Purchases:  $2,000 to $5,000
• Initial Inventory:  $8,500 to $15,000
• Insurance:  $3,500 to $17,000
• Training:  $5,000 to $15,000
• Initial Marketing Campaign:  $30,000 to $50,000
• Signage:  $10,000 to $38,000
• Point-of-Sale System (“POS System”) and Back Office Software:  $13,500 to $18,000
• Office Equipment/Supplies:  $3,000 to $7,000
• Licenses and Permits:  $1,000 to $7,500
• Professional Fees:  $6,000 to $40,000
• Additional Funds (3 months):  $25,000 to $150,000
• Total Estimated Pancheros Mexican Grill Franchise Costs:  $680,500 to $1,387,500

Section II – Pancheros Mexican Grill’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $25,000 to $30,000
• Royalty Fee:  5% of Gross Revenues
• Advertising Fund Contribution:  up to 3% of Gross Revenues; currently 2%
• Local Advertising Requirement:  at least 3% of Gross Revenues
• Advertising Cooperative:  your proportionate share will be determined by participating locations in the advertising cooperative

Section III – Number of Franchised and Company-Owned Pancheros Mexican Grill Outlets

Franchised

2021

• Outlets at the Start of the Year:  43
• Outlets at the End of the Year:  43
• Net Change:  0

2022

• Outlets at the Start of the Year:  43
• Outlets at the End of the Year:  47
• Net Change:  +4

2023

• Outlets at the Start of the Year:  47
• Outlets at the End of the Year:  48
• Net Change:  +1

Company-Owned

2021

• Outlets at the Start of the Year:  26
• Outlets at the End of the Year:  27
• Net Change:  +1

2022

• Outlets at the Start of the Year:  27
• Outlets at the End of the Year:  27
• Net Change:  0

2023

• Outlets at the Start of the Year:  27
• Outlets at the End of the Year:  26
• Net Change:  -1

Section IV – News Updates on the Pancheros Mexican Grill Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Pancheros Mexican Grill Franchise (Item 19, 2024 FDD)

Part 1 – 2023 Gross Sales of All 73 Restaurants in Operation for the Full Calendar Year 2023

• As of December 31, 2023, there were 73 Pancheros restaurants (47 franchised restaurants and 26 affiliate-owned restaurants) in operation for the calendar year 2023.

All 73 Restaurants

• Total:  $111,478,836.17
• Average:  $1,527,107.34
• 33 (45%) franchised restaurants and 11 (15%) affiliate-owned restaurants met or exceeded this average.
• Median:  $1,400,919.26
• 27 (37%) franchised restaurants and 10 (14%) affiliate-owned restaurants met or exceeded this median.
• High:  $4,379,706.86
• Low:  $422,263.10

47 Franchised Restaurants

• Total:  $70,342,915.20
• Average:  $1,496,657.77
• 32 (68%) franchised restaurants met or exceeded this average.
• Median:  $1,315,222.70
• 24 (51%) of franchised restaurants met or exceeded this median.
• High:  $4,379,706.86
• Low:  $422,263.10

26 Affiliate-Owned Restaurants

• Total:  $41,135,920.97
• Average:  $1,582,150.81
• 11 (42%) affiliate-owned restaurants met or exceeded this average.
• Median:  $1,611,421.40
• 14 (54%) affiliate-owned restaurants met or exceeded this median.
• High:  $2,556,922.81
• Low:  $756,480.23

• These financial performance figures do not reflect royalty fees, advertising fund contributions, operating expenses, or other costs or expenses that must be deducted from gross sales to obtain your net income or profit.

Part 2 – 2023 Gross Sales of All 66 Restaurants in Operation for Three Full Calendar Years from 2021-2023

• As of December 31, 2023, there were 67 Pancheros restaurants (42 franchised restaurants and 25 affiliate-owned restaurants) in operation for the three calendar years 2021 to 2023.

All 67 Restaurants

• Total:  $105,021,557.52
• Average:  $1,567,485.93
• 28 (42%) franchised restaurants and 10 (15%) affiliate-owned restaurants met or exceeded this average.
• Median:  $1,439,101.47
• 24 (36%) franchised restaurants and 10 (15%) affiliate-owned restaurants met or exceeded this median.
• High:  $4,379,706.86
• Low:  $422,263.10

42 Franchised Restaurants

• Total:  $67,715,268.58
• Average:  $1,540,839.73
• 28 (67%) franchised restaurants met or exceeded this average.
• Median:  $1,332,335.58
• 21 (50%) of franchised restaurants met or exceeded this median.
• High:  $4,379,706.86
• Low:  $422,263.10

25 Affiliate-Owned Restaurants

• Total:  $40,306,288.94
• Average:  $1,612,251.56
• 12 (48%) affiliate-owned restaurants met or exceeded this average.
• Median:  $1,637,043.37
• 13 (52%) affiliate-owned restaurants met or exceeded this median.
• High:  $2,556,922.81
• Low:  $756,480.23

Part 3 – 2023 Food and Paper Costs for 26 Affiliate-Owned Pancheros Restaurants Operating Full 12 Months

• The following chart reflects the 2023 food and paper costs for the 26 affiliate-owned restaurants that Pancheros operates, that were in operation for the full 12 months of 2023. These 26 restaurants use a common back office system and common food cost calculation procedures.

• There are no franchised restaurants in this group.

Food Costs

• Average:  26.24%
• 11 (or 42%) of these 26 restaurants met or exceeded this average.
• Low:  23.70%
• High:  29.70%
• Median:  25.95%

Paper Costs

• Average:  3,69%
• 14 (or 58%) of these 26 restaurants met or exceeded this average.
• Low:  3.20%
• High:  4.40%
• Median:  3.70%

• The above costs do not include labor, rent, utilities, and other costs incurred by affiliate-owned restaurants.

• Franchised restaurants may incur additional costs that affiliate-owned restaurants do not have, including royalty payments, training expenses, and certain advertising fees.

• Some restaurants have sold these amounts. Your individual results may differ. There is no assurance that you will sell as much.

Section VI – Pancheros Mexican Grill Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️