Risk Score
Pending analysis
Investment Range
$246,274 - $554,467
Franchise Fee
$30,000
Min Cash Required
$38,879
Total US Locations
2
Business Summary
THE EMPANADA MAKER operates casual dining restaurants that specialize in traditional South American style empanadas, as well as unique empanada recipes with a variety of specialty fillings like breakfast chorizo, chicken, pepperoni pizza, ham and cheese, and Philly cheesesteak. The restaurants also offer dessert empanadas, side dishes, salads, soups, dipping sauces, and various drinks.
Corporate History
THE EMPANADA MAKER FRANCHISE GROUP, LLC was organized as a Delaware limited liability company on February 13, 2024. The company's sole business since its inception has been selling THE EMPANADA MAKER franchises and providing related services. It began selling franchises in 2024. An affiliate, THE EMPANADA MAKER RESTAURANTS, INC., was formed in California on October 16, 2012, and has been operating THE EMPANADA MAKER restaurants since November 2013.
Financial Overview
Investment Range
$246,274 - $554,467
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$40,000
Minimum Cash Required
$38,879
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$105,000
Equipment Costs (High)
$290,000
Working Capital
$56,479
Audited Financials
No
Offers Financing
No
Audit Opinion
Unqualified opinion, Going concern qualification
Financial Health Notes
THE EMPANADA MAKER FRANCHISE GROUP, LLC was organized recently on February 13, 2024. As of December 31, 2023, THE EMPANADA MAKER FRANCHISE GROUP, LLC has negative working capital and an accumulated deficit. These financial factors raise substantial doubt about THE EMPANADA MAKER FRANCHISE GROUP, LLC's ability to continue operating. Management is actively working to address this uncertainty by negotiating a line of credit facility that is expected to provide enough working capital in the first half of 2024. The financial statements, however, do not reflect any adjustments that would be needed if THE EMPANADA MAKER FRANCHISE GROUP, LLC cannot continue as a going concern.
Financing Details
THE EMPANADA MAKER FRANCHISE GROUP does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
2
Franchised Units
0
Corporate Units
2
Avg Square Footage
900
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
THE EMPANADA MAKER FRANCHISE GROUP has no litigation to report. The FDD states that no litigation is required to be disclosed in Item 3.
Bankruptcy History
THE EMPANADA MAKER FRANCHISE GROUP's Owner and Manager, Cameron Davis, filed for Chapter 13 personal bankruptcy on October 28, 2016, in the Central District of California. The court granted a discharge for this bankruptcy on January 12, 2022, meaning the case is now resolved.
Agreement Terms
Initial Term
7 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, THE EMPANADA MAKER FRANCHISE GROUP franchisees must be in good standing and provide written notice of their intent to renew between nine and twelve months before their initial term expires. They must ensure all debts and obligations are current, including Brand Development Fund contributions. Franchisees must not have received more than three default notices during any consecutive twelve-month period of the initial term. They must also sign the then-current franchise agreement and ancillary agreements, which may have materially different terms. A renewal fee of $5,000 is required, along with a general release of claims against the franchisor. Franchisees must also renovate and re-equip their restaurant to meet current brand standards and provide satisfactory evidence of their right to possess the location for the renewal term.
Training & Support Program
Franchisor Assistance
THE EMPANADA MAKER FRANCHISE GROUP provides pre-opening assistance including a management training program for the Operations Manager, lending a set of Brand Standards Manuals, advising on recommended locations and remodeling (if requested), and providing written specifications for restaurant design, layout, equipment, and approved suppliers. They also review proposed development and construction plans and inspect the restaurant before opening. Ongoing assistance includes advice and consultation services, making advertising materials available, communicating system improvements, providing mandatory annual refresher training (up to three days per year, with franchisees covering associated costs), and offering additional training upon request (for a fee). The franchisor also maintains an online presence for the brand and requires franchisees to use approved computer/POS systems. A Franchise Advisory Council may also be maintained.
Initial Training Hours
48
Training Location
Orange County, California (classroom in Costa Mesa, CA and restaurant training in Mission Viejo, CA)
Ongoing Support
After opening, THE EMPANADA MAKER FRANCHISE GROUP provides ongoing advice and consultation services. They make advertising materials available and review franchisee-proposed advertisements. Franchisees will receive information on system improvements and additions. There is mandatory refresher training of up to three days per year at a location designated by the franchisor, with franchisees responsible for their own travel and living expenses. Additional optional or required training is available for a fee. Franchisees are also required to attend conferences and conventions, with an attendance fee and responsibility for their own travel/living costs. The franchisor maintains an online presence for the brand and requires the use of approved computer/POS systems. A Franchise Advisory Council may be formed to provide input.
Franchise Requirements
Ideal Candidate Profile
The Empanada Maker prefers to select franchisees who are committed to a 'hands-on' and well-informed approach to the business. The franchisor strongly recommends that franchisees personally supervise their business and devote a substantial amount of time to its establishment and operation. While a manager can be hired, the franchisor prefers an owner who is deeply involved in the daily running of The Empanada Maker business.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
protected
Territory Size Requirements
THE EMPANADA MAKER FRANCHISE GROUP designates a protected territory that typically consists of 30,000 people, based on the latest U.S. Census data or other reliable data. The franchisor reserves the right to designate a smaller territory in densely populated areas or a smaller or greater radius if mutually agreed upon with the franchisee. The specific location within this territory must be accepted by the franchisor.
Staffing Notes
THE EMPANADA MAKER FRANCHISE GROUP requires that the franchised business be directly supervised and managed by an approved Operations Manager who has completed the franchisor's training program. The franchisor prefers and strongly recommends that franchisees personally supervise their business and devote substantial time to it, even if a manager is hired. Franchisees are solely responsible for recruiting, hiring, compensating, and training their employees, as well as managing wages, taxes, benefits, schedules, and work conditions, and ensuring compliance with all applicable employment laws. All personnel must adhere to operational standards for sanitation, cleanliness, customer service, and uniforms. The Brand Standards Manual provides job descriptions for roles such as Owner/General Manager, Prep/Kitchen, and Cashier, along with training schedules and tests for each position.