Baja Fresh
Baja Fresh offers franchises for quick-service restaurants serving fresh Mexican-style food. Known for its flavorful menu and casual dining atmosphere, Baja Fresh operates in the fast-casual restaurant sector.
About Baja Fresh
Baja Fresh is an American chain of fast-casual Tex-Mex restaurants founded in Newbury Park, California, in 1990 and headquartered in Scottsdale, Arizona. It is owned by Canadian franchisor MTY Food Group. The chain emphasizes fresh ingredients, each restaurant featuring a self-serve salsa bar.
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Baja Fresh franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operations ranges widely depending on the type of restaurant. For a Traditional Restaurant Program, the range is from approximately $428,560 to $1,012,290, including an Initial Franchise Fee between $22,000 and $42,500 [p.1]. For a Non-Traditional Restaurant Program, the range is from approximately $224,950 to $777,200, with an Initial Franchise Fee ranging from $13,000 to $23,500 [p.1].
What is the initial franchise fee?
The initial franchise fee ('Initial Franchise Fee') varies based on the type of restaurant. For a Traditional Restaurant, it is $30,000 for the first location and reduced to $15,000 for each subsequent traditional restaurant. For a NonTraditional Restaurant, the fee is $20,000 for the first location and reduced to $10,000 for each subsequent non-traditional restaurant [p.34].
What are the ongoing royalty and advertising fees?
The ongoing fees include royalty fees and advertising contributions, which may be greater than those in the Assignor's Franchise Agreement upon a full transfer where the assignee enters into a new franchise agreement [p.453]. These fees are subject to change based on the current form of franchise agreement provided by the franchisor [p.462].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD excerpts provided do not include information about the length of the initial franchise agreement or details on renewal terms beyond mentioning a Renewal Franchise Fee of 50% of the current initial fee when renewing [p.180, p.316].
Can I sell or transfer my franchise, and what does that require?
You cannot freely sell or transfer your franchise; it requires good cause as specified by the franchisor. The franchisor may also exercise a right of first refusal to purchase the franchise instead [p.102, p.487].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes failure to comply with lawful material provisions of the franchise agreement and not curing such defaults within a reasonable time [p.505]. Additionally, termination is permissible if the franchisee is adjudicated bankrupt, makes an assignment for the benefit of creditors, voluntarily abandons the business, or is convicted of violating laws related to the franchised business [p.505].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. According to the FDD, you may face competition from other franchisees, company-owned restaurants, and other channels of distribution or competitive brands controlled by the franchisor [p.67]. This isn't specified in the excerpts.
What training and ongoing support does the franchisor provide?
The franchisor provides a Training Program consisting of In-Store Training (240 hours) and New Owner Training (40 hours), which can be conducted either online or at their training center in Scottsdale, Arizona. This program is designed to cover essential operations for the franchise. Additionally, the franchisor may offer informal training sessions from time to time, though attendance is not mandatory [p.61]. The franchisee is responsible for all transportation, food, lodging, and other personal expenses related to the Training Program [p.72, p.240, p.308, p.172].
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 67 franchised stores open in the United States. This information is specified on page [p.83]. The excerpts do not provide details on any closed or terminated outlets.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations except for providing actual records of an existing outlet if you are purchasing one. However, they can provide such information if there is a reasonable basis and it is included in the disclosure document [p.84]. This isn't specified in the excerpts regarding whether they share earnings information proactively without a specific request or situation.
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling only certain items; however, if the Franchise Agreement requires goods, supplies, inventories, or services to be purchased exclusively from the franchisor or sources designated by them, you may have to do so. This requirement can be overridden by Indiana laws related to deceptive franchise practices under specific conditions [p.482]. Additionally, you must submit specifications and other information for approval before purchasing equipment, supplies, or inventory items not previously approved by the franchisor from new sources [p.257, p.326].