FDD Analysis 2024 FDD

Qdoba, Qdoba Mexican Eats, Qdoba Mexican Grill Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Qdoba, Qdoba Mexican Eats, Qdoba Mexican Grill's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the Qdoba, Qdoba Mexican Eats, Qdoba Mexican Grill FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$545,500 - $1,294,000
Franchise Fee$40,000

Investment Breakdown

Franchise Fee$40,000 - $40,000
Development costs: plans, legal fees, permits$20,000 - $50,000
Leasehold improvements$200,000 - $525,000
Furnishings, fixtures and equipment$185,000 - $330,000
Signage$10,000 - $35,000

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee5% of gross sales
Marketing/Advertising Fee6.25% of gross sales

Other Ongoing Fees

Lease Administration FeeVaries
Technology Support License and InstallationVaries
Technology Support Project Management and Database ConfigurationVaries
IT Base ServicesVaries
IT Project ServicesVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$1,517,915/year
Disclosure Year2024
Reporting Units
Revenue VarianceHigh variance (wide performance range)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

777

Total Units

+30

Net Growth (YoY)

+4.0%

Growth Rate

Franchised Units613
Company-Owned Units164

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

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