Orizabas
Orizabas offers franchises for fast-casual Mexican restaurants serving scratch-made cuisine. Known for their made-to-order meals, these franchises cater to the casual dining sector of the restaurant industry.
Orizabas franchise FAQ
How much does it cost to open one — the total initial investment?
The estimated initial investment for opening a traditional Ori'Zaba's Restaurant ranges from $499,700 to $883,200. This includes between $60,000 and $67,800 that must be paid to the franchisor or its affiliate(s) [p.1].
What is the initial franchise fee?
The initial franchise fee is $30,000 for a single territory. If you purchase a second franchise at the same time, your Initial Franchise Fee will be $25,000 for the second franchise [p.111]. Active duty and honorably discharged and retired veterans receive a $10,000 discount on the Initial Franchise Fee [p.23]. This isn't specified in the excerpts for area development agreements or if no additional franchises are purchased simultaneously.
What are the ongoing royalty and advertising fees?
The FDD does not specify exact amounts for ongoing royalty or advertising fees. It mentions that a technology fee may change from time to time based on services provided and costs incurred [p.21], and that you will pay an unauthorized advertising fee of $500 per occurrence to the Brand Fund if custom marketing materials are used without approval [p.75]. However, specific details about ongoing royalty or advertising fees are not provided in these excerpts.
How long is the initial franchise agreement, and can I renew it?
The term length of the initial franchise agreement isn't specified in these excerpts. However, you have options to extend the franchise under the same terms and conditions set forth herein for up to two additional periods after the original term expires [p.67].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.5]. Additionally, if there is a requirement for the franchisor's consent for any transfer (full or partial), the franchisor will not unreasonably withhold such consent [p.204]. Good cause includes but is not limited to specific criteria outlined by the franchisor.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.179]. However, termination without reasonable cause is unlawful under Virginia Retail Franchising Act Section 13.1-564 [p.181], and good cause for termination includes failure to comply with lawful provisions of the franchise agreement after being given notice and a reasonable opportunity to cure [p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
The FDD indicates that you must maintain a sufficient working capital and net worth to fulfill your responsibilities under the agreement [p.71]. However, specific figures for net worth or liquid capital are not provided in these excerpts.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory but are granted a protected territory ('Protected Area'). During the term of the Franchise Agreement, Ori'Zaba's will not establish another Ori'Zaba's Restaurant within your Protected Area as long as you comply with your Franchise Agreement [p.42].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial 'Train-the-Trainer' training program for your Designated Manager and one additional managerial employee before opening the restaurant. This includes a flat fee of $7,000 for New Store Opening Assistance [p.39]. Additionally, you may be required to attend an annual meeting with other franchisees and pay a convention fee if applicable [p.42]. For ongoing support, there is a possibility of incurring additional fees for pre-opening training or setup assistance, charged at $500 per day plus actual costs [p.79]. This isn't specified in the excerpts regarding specific types of ongoing training beyond the initial program and annual meetings.
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor, Ori'Zaba's Franchise Operations, LLC, does not make any financial performance representations. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that specific outlet [p.57]. Additionally, tables presenting financial information for both franchised and affiliate outlets are included in the disclosure document [p.55].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those services and products authorized by the franchisor, which meet their standards and specifications. You must purchase all required inventory and supply items from suppliers designated or approved by the franchisor, including potentially the franchisor or its affiliates [p.70, p.80].