Risk Score
Pending analysis
Investment Range
$356,000 - $757,000
Franchise Fee
$28,000
Total US Locations
130
Business Summary
Bubbakoo's Burritos operates quick-casual restaurants that offer Mexican-inspired cuisine, including burritos, tacos, quesadillas, nachos, taco salads, and "Chiwawas." The restaurants also serve other specialty items, sides, desserts, and authorized beverages in a clean, healthy, and friendly environment.
Corporate History
Bubbakoo's Franchise Systems, LLC was organized in New Jersey on August 26, 2014, with its principal business address in Wall, New Jersey. The company began offering franchises in February 2015. An affiliate, PBKK Enterprises, Inc., had opened its first restaurant under the BUBBAKOO'S BURRITOS brand in Point Pleasant, New Jersey, in June 2008, prior to the franchisor entity being formed.
Financial Overview
Investment Range
$356,000 - $757,000
Franchise Fee (Low)
$28,000
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$255,000
Equipment Costs (High)
$530,000
Working Capital
$22,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor, Bubbakoo's Franchise Systems, LLC, has a negative net worth, with a members' deficit of $(12,381) as of December 31, 2024, although this is an improvement from $(649,592) in 2023. The total liabilities of Bubbakoo's Franchise Systems, LLC currently exceed its total assets. The FDD itself, in Item 0, states that the franchisor's financial condition "calls into question the franchisor's financial ability to provide services and support" to franchisees.
Financing Details
Bubbakoo's Franchise Systems, LLC does not offer any direct or indirect financing options to its franchisees, nor does it guarantee any franchisee obligations. Franchisees will need to secure their own funding.
Performance Metrics
Total US Locations
130
Franchised Units
118
Corporate Units
12
Avg Square Footage
1,750
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Bubbakoo's Burritos has no litigation or legal disputes to report.
Bankruptcy History
Bubbakoo's Burritos has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise agreement, Bubbakoo's Burritos franchisees must not have any uncured material defaults, nor have received more than three notices of material default in the 12 months before renewal. Franchisees must be in good financial standing, have continuous possession of the premises, and complete any required renovation and modernization of their business. They must pay a renewal fee equal to 10% of the then-current Initial Franchise Fee, sign the franchisor's then-current franchise agreement (which may have different terms), complete a refresher training course (typically 3 days), pay the tuition fee for training ($250 per day per trainee), and execute a general release in favor of Bubbakoo's Franchise Systems, LLC and related parties. Franchisees must also have supported and participated in the franchisor's programs.
Training & Support Program
Franchisor Assistance
Bubbakoo's Burritos provides significant assistance to its franchisees. Pre-opening support includes site selection guidelines and assistance, review and approval of proposed leases or purchase agreements, definition of the Designated Territory, and up to seven days of on-site assistance and training at the premises before opening. Bubbakoo's Burritos also loans a copy of its confidential Operations Manuals, provides lists of Approved Products, Required Items, and Approved Suppliers, and reviews/approves signage, layout, design, equipment, furniture, and fixtures. They also offer guidance in establishing product prices. An Initial Training Program is provided for the franchisee and one other person tuition-free, typically lasting about five weeks, covering various aspects of restaurant operation, and conducted in New Jersey or Florida. Post-opening, Bubbakoo's Burritos may require franchisees and their Designated Managers to attend annual additional/refresher courses, provides continuing consultation and advice, reviews and approves advertising/marketing materials, and handles requests for non-approved products/suppliers. They may also schedule annual conferences for franchisees, list the franchised business on the corporate website, administer the brand development Fund, conduct inspections/audits, and provide updates to the Manuals. Additionally, the franchisor may implement mystery shopper programs and research new products/services.
Initial Training Hours
250
Training Location
Franchisor's training facility in New Jersey or Florida or other designated facility
Ongoing Support
After opening, Bubbakoo's Burritos franchisees and their designated managers may be required to attend annual additional or refresher training courses, not exceeding five days per year, for which a tuition fee of $250 per day per trainee is charged, in addition to covering all associated expenses. The franchisor provides continuing consultation and advice on managing and operating the business via phone, fax, or intranet. It also reviews and approves advertising and marketing materials, processes requests for non-approved products or alternative suppliers, and may hold annual conferences. Bubbakoo's Burritos lists the franchised business's contact information on its website, administers the brand development fund, conducts inspections and audits to ensure compliance, and provides updates to the operations manuals. Additionally, the franchisor may establish mystery shopper programs, quality assurance audits, and research new recipes, ingredients, equipment, and services for the system.
Franchise Requirements
Ideal Candidate Profile
Bubbakoo's Burritos seeks qualified individuals and entities, preferably those with at least three years of management experience in the quick-casual restaurant industry, to either operate the business hands-on or designate a manager with such experience. Candidates should be capable of completing the franchisor's initial training program to its satisfaction.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
3
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Bubbakoo's Burritos typically defines a franchisee's Designated Territory as a two-mile radius around the premises. However, for locations in major metropolitan downtown areas or central business districts, the territory may be limited to a two-block to two-mile radius around the premises, or a geographical area with a population of 30,000.
Staffing Notes
Bubbakoo's Burritos requires that each restaurant be managed and staffed at all times with at least one individual who has successfully completed the franchisor's Initial Training Program. If an owner operates multiple restaurants, each must have a properly trained Designated Manager. Franchisees, or a trained individual, are responsible for training all other employees on sales, advertising, premises maintenance, POS system use, and other relevant operational standards as outlined in the manuals. If a Designated Manager leaves, a replacement must be recruited within 30 days and approved by the franchisor.