Bubbakoos Burritos
Bubbakoos Burritos offers franchises for quick casual restaurants serving burritos, tacos, and other Mexican cuisine. Known for its proprietary marks and development opportunities, it operates in the fast-casual dining sector.
Bubbakoos Burritos franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment to open a new Franchised Business ranges from $356,000 to $757,000. This figure includes the costs of equipment, furniture, fixtures, and other items necessary for operation, but does not include the Initial Franchise Fee since it's waived under the Development Agreement [p.29].
What is the initial franchise fee?
The initial franchise fee is $35,000 [p.15, p.78]. This fee is deemed fully earned and non-refundable upon payment [p.15, p.78, p.150].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is six percent (6%) of the Gross Sales generated by the Franchised Business, paid weekly [p.78]. For advertising, franchisees must spend at least one percent (1%) of their Gross Sales on local advertising and promotion to comply with the Local Advertising Requirement under the Franchise Agreement [p.60].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's duration isn't specified in the excerpts. However, renewal is possible; Franchisee may submit a request to renew for up to two additional terms of five years each, provided they comply with notice requirements [p.77].
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit the transfer of your ownership of the franchise except for good cause. Good cause includes but is not limited to specific reasons such as material breach of the agreement by you. Additionally, any transfer must comply with applicable laws governing the offer and sale of franchises [p.6; p.107].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is a default by the franchisee that has not been cured within the specified time period, as stated in [p.110]. Additionally, the franchisor may terminate the agreement for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity to do so, typically no more than 30 days, as mentioned in [p.6]. This isn't specified in the excerpts for other specific grounds beyond these conditions.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does mention the need for adequate financial resources and capital to meet performance obligations [p.106], but it doesn't provide specific details on net worth or liquid capital requirements.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, from outlets owned by the company, or from other channels of distribution or competitive brands that the company controls [p.47, p.203].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program at their corporate headquarters or a designated facility, which includes on-site assistance up to seven days before opening. This can extend based on the franchisor's discretion if additional training is needed. Ongoing support includes participation in any system-wide computer networks and may require using these systems for various tasks such as submitting reports and accessing manuals. [p.44] Additionally, the franchisor offers ongoing training as deemed appropriate by them. [p.78-82]
How many franchised outlets are there, and how many have closed or been terminated?
The FDD provides data on the number of franchised outlets as of certain years, but it does not specify exact numbers. It only mentions that such data is available [p.167]. Additionally, while it lists criteria for franchisees who may have ceased operations, it does not provide a count of closed or terminated franchises [p.65].
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor shares financial performance information. According to [p.58], the franchisor provides details on Gross Sales and other key performance indicators for both their owned locations and franchised locations. However, this information is limited to specific Affiliate and Franchised Locations that operated during a particular period. [p.61] also notes that such financial performance information should not be relied upon unless provided through actual records of an existing outlet or supplements to the information in Item 19.
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the approved products and services as specified by the franchisor. You may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.4].