Qdoba Mexican Grill
Date Incorporation: 1995
Franchising Since: 1997
Headquarters: Colorado
Description: Qdoba® restaurants are fast casual restaurants, featuring a selection of tacos and California-style jumbo-sized burritos made with steamed 13" tortillas and filled with cilantro rice, whole beans, a choice of five fresh salsas, cheese, sour cream and the customer's choice of marinated and grilled meats or a variety of vegetarian items. All restaurants also offer a wide selection of soft drinks and most also sell beer and margaritas.
Franchise Offer: The franchisor grants franchisees for the operation of high quality quick-service or fast casual Mexican restaurants under the service mark Qdoba Mexican Grill®. The franchisor offers the right and duty to operate a Qdoba Mexican Grill® restaurant business under the terms and conditions of a franchise agreement.
Under the standard area development agreement, the franchisor also grants to certain qualified persons the right, subject to certain terms and conditions, to develop one or more Qdoba® restaurant(s) within defined geographical area.
Financial Assistance: No direct or indirect financing is offered by the franchisor.
Training and Assistance: After the site is approved but before the restaurant is opened, the franchisor will provide an initial training program for the designated operating partner, the general manager, and one other person employed in the restaurant.
The in training (MIT) program lasts four weeks. The program starts every Monday with an orientation at the corporate support center in the Denver Metro area in Colorado. Thereafter, the trainee will attend on-the-job training at a certified training restaurant and classroom training at the corporate support center. The franchisor will provide site pre-opening and opening supervision and assistance. The designated operating partner, general manager and/or certain other employees must also attend refresher courses, seminars and other training programs.
Territory: Under the development agreements and franchise agreements the franchisor will grant the franchisee an exclusive territory, but there are exceptions to that exclusivity.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years and can be renewed for another 10 years, subject to certain requirements.
Obligations and Restrictions: The franchisee, or another individual approved by the franchisor must supervise the development of all restaurants to be opened under a development agreement. Under the franchise agreement, eQdoba® restaurant must at all times be under the full-time supervision of a designated operating partner and a general manager. The person who is responsible for the day-to-day supervision of the restaurant must assume such responsibilities on a full-time basis, and may not engage in any other business or other activity. franchisee must sell or offer for sale only such menu items, products or services as have been expressly approved in writing for sale or specified by the franchisor. The franchisee must offer for sale the entire Qdoba® menu, as specified by franchisor.
Total Number of Units: 395 units by September 30, 2007
Total Number of franchises Units: 305 franchised units by September 30, 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Franchise fee | $30,000 | $30,000 |
| Development costs: plans, legal fees, permits | $15,000 | $38,000 |
| Brokers and management fees | $0 | $12,000 |
| Leasehold improvements | $163,000 | $342,000 |
| Furnishings, fixtures and signage installed | $148,000 | $170,000 |
| Systems | $24,000 | $30,000 |
| Opening inventory | $7,000 | $10,000 |
| Travel and living expenses while training | $0 | $6,000 |
| Miscellaneous pre-opening expenses | $10,000 | $16,000 |
| Grand opening advertising | $5,000 | $5,000 |
| Insurance (excluding several types of coverage) | $4,500 | $8,000 |
| Liquor license | $2,500 | $10,000 |
| Real property lease/purchase costs | Varies depending on location | |
| Additional funds (3 months) | $30,000 | $50,000 |
| Total (excluding real property costs) | $439,000 | $727,000 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty fee | 5% of gross sales |
| National marketing fund | Up to 2% of gross sales |
| Local advertising | A minimum of 2% of gross sales |
| Q-Cash™ Card program fees | Negotiated with vendor |
| Q-Cash™ installatio | $250 |
| Renewal fee | Greater of 15% of the then-current franchise fee or $5,000 |
The above information has been taken from the UFOC/FDD of Qdoba Mexican Grill
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