Risk Score
Pending analysis
Investment Range
$371,400 - $856,100
Franchise Fee
$20,000
Total US Locations
65
Business Summary
Salsarita's Franchising, LLC offers franchises for restaurants specializing in fast casual Mexican food, including burritos, soft tacos, quesadillas, fajitas, salads, nachos and other approved items. The restaurants utilize a proprietary, distinctive interior and exterior store design and layout, operating under a prescribed system that includes operations manuals, menus, recipes, uniform operating methods, and confidential procedures for inventory, cost controls, record keeping, purchasing, marketing, sales promotion, and advertising. The business operates in a highly competitive restaurant market, including fast food, fast casual, cafes, sandwich shops, and casual dining.
Corporate History
Salsarita's Franchising, LLC was formed in Mississippi on April 19, 2011. The company began offering franchises for Salsarita's Fresh Mexican Grill restaurants on July 19, 2011. Prior to 2018, these franchises operated under the name "Salsarita's Fresh Cantina." An affiliate, Salsarita's Restaurants, LLC, also owns and operates locations, which are sometimes used for franchisee training.
Financial Overview
Investment Range
$371,400 - $856,100
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$30,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$418,800
Equipment Costs (High)
$711,000
Working Capital
$22,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Salsarita's Franchising, LLC's financial statements indicate that the company is in good financial health, as evidenced by unqualified audit opinions for both 2023 and 2024. The company reported positive net income of $953,223 in 2024 and $745,648 in 2023, along with substantial member's equity and cash reserves. Although the company engages in related party transactions, management states they believe all related party advances will be fully recovered, and an allowance for credit losses has not been recorded for them. The auditor's reports did not express any substantial doubt about Salsarita's Franchising, LLC's ability to continue as a going concern.
Financing Details
Salsarita's Franchising, LLC does not offer any direct or indirect financing to its franchisees and does not guarantee notes, leases, or obligations. However, Salsarita's Franchising, LLC may, under certain circumstances, offer select lenders collateral enhancement rights related to the lender's security interest in the restaurant's assets through a tri-party agreement involving the franchisee, Salsarita's Franchising, LLC, and the lender.
Performance Metrics
Total US Locations
65
Franchised Units
56
Corporate Units
9
Avg Square Footage
2,200
Franchising Since
2011
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Salsarita's Franchising, LLC has no litigation history to report, as stated in Item 3 of the FDD.
Bankruptcy History
Salsarita's Franchising, LLC has no bankruptcy history to disclose, as stated in Item 4 of the FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Salsarita's Fresh Mexican Grill franchise, franchisees must have fully complied with all provisions of their existing Franchise Agreement and not be in default. They need to ensure they maintain possession of their franchise location and have brought it up to current Salsarita's Franchising, LLC specifications and standards. All monetary obligations to Salsarita's Franchising, LLC and its affiliates must be satisfied. Franchisees must sign the then-current form of Franchise Agreement, which may have different terms and conditions, and pay a renewal fee. They also need to meet Salsarita's Franchising, LLC's current qualification and training requirements and sign a general release of claims.
Training & Support Program
Franchisor Assistance
Salsarita's Franchising, LLC provides significant assistance to its franchisees both before and after opening. Before a Salsarita's Fresh Mexican Grill restaurant opens, the franchisor offers site selection guidelines, counseling, and one free on-site evaluation, along with reviewing lease or purchase agreements. They also assist with the restaurant's layout and design, providing equipment and supply specifications. Initial training, lasting approximately 27 days, is provided for up to three people, and franchisees receive electronic access to the operations manuals. After opening, Salsarita's Franchising, LLC offers additional or refresher training programs, including training for new managers (potentially for a fee), and provides consulting services if requested (also for a fee). They advise on suggested retail prices, provide lists of approved suppliers, and review franchisee advertising materials. Salsarita's Franchising, LLC also reserves the right to periodically modify the System, including manuals, menus, and restaurant design. Additionally, the franchisor implements guest satisfaction programs to monitor compliance and customer feedback.
Initial Training Hours
186
Training Location
Corporate headquarters in Charlotte, NC, and online
Ongoing Support
Salsarita's Franchising, LLC provides ongoing support to its franchisees after opening, which includes additional or refresher training courses, and initial training for new managers (for a fee). Franchisees can also request consulting services (for a fee). The franchisor advises on suggested retail prices and provides a list of approved suppliers for products and services. Salsarita's Franchising, LLC also reviews franchisee advertising materials and has the right to periodically modify the System, including manuals, menus, and restaurant design. Additionally, the franchisor implements guest satisfaction programs to monitor compliance and customer feedback.
Franchise Requirements
Ideal Candidate Profile
The ideal Salsarita's Fresh Mexican Grill franchisee is someone who can either be an actively involved Operating Principal or can designate an Operating Principal meeting specific criteria. This Operating Principal must be at least a 10% equity owner, reside within a reasonable driving distance of the restaurant, and dedicate full-time effort to supervising its operations, without engaging in other substantial management responsibilities. Franchisees must also employ a manager who meets Salsarita's Franchising, LLC's educational, managerial, and business standards, has good moral character, business reputation, and credit rating, and possesses the aptitude and ability to operate the franchise. Additionally, prospective franchisees must demonstrate adequate capital or access to capital to fund the establishment and operation of the restaurant.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Salsarita's Franchising, LLC defines its Protected Territory as a minimum of a one-mile radius from the Salsarita's Fresh Mexican Grill restaurant. For locations in urban areas or non-traditional settings, the Protected Territory may be limited to the specific building or structure where the franchise is located.
Staffing Notes
Salsarita's Franchising, LLC requires each Salsarita's Fresh Mexican Grill franchise to have a designated Operating Principal who is an equity owner of at least 10% and devotes full-time effort to supervising the restaurant's operations. The franchisee must also employ a Manager who meets the franchisor's educational, managerial, and business standards, possesses good moral character, business reputation, and credit rating, and has the ability to operate the franchise. both the Operating Principal and the Manager, along with other designated management employees, must complete initial training and any required refresher training, including ServSafe food safety certification. At all times the restaurant is open, at least one ServSafe certified person must be on-site. For opening assistance, up to 20 employees are estimated to be salaried during this period.