Salsaritas
Salsaritas offers fast casual Mexican restaurants specializing in burritos, tacos, and salads. Known for its distinctive interior design and proprietary menu items, it operates in the competitive quick-service restaurant sector.
About Salsaritas
Salsarita's Fresh Mexican Grill is a chain of fast casual Tex Mex restaurants in the United States serving Mexican-style cuisine. The company is headquartered in Charlotte, North Carolina, and operates 6 restaurants throughout North Carolina.
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Salsaritas franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Salsarita's Fresh Mexican Grill® Restaurant ranges from $371,400 to $856,100 [p.1]. This includes a mandatory payment of $30,000 to the company or an affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $30,000 [p.9, p.86]. This fee is not refundable for any reason and is deemed fully earned by the franchisor upon payment [p.86].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is generally 5% of monthly net revenues, payable once the franchise is operational [p.231]. Additionally, all franchisees are required to contribute to marketing funds used for advertising and promoting the Salsarita's Mexican Cantina brand, with these contributions based on the franchisees' monthly net revenues as defined in the agreements [p.250].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to [p.118], you can assign or transfer your franchise, but it comes with certain conditions and fees. If the transferee is an existing franchisee or controlled by one or more Owners of any existing franchisee, they will be charged a transfer fee equal to 30% of the current Initial Franchise Fee plus training fees if applicable. However, if the transferee is not an existing franchisee or controlled by such owners, the fee would be 100% of the current Initial Franchise Fee. Notably, transfers involving less than 50% ownership do not require a transfer fee in certain cases. Additionally, the assignee may need to attend training at the franchisor's expense if deemed necessary.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law, as stated in [p.67]. Additionally, the franchisor has the right to terminate agreements for events of default, such as non-payment or failure to comply with franchise obligations, according to [p.172].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a franchisee, you must demonstrate adequate financial resources and capital to manage the Franchise [p.118]. While specific net worth or liquid capital figures are not provided, you need to show that you can cover on-going expenses for at least three months during the start-up phase [p.19], and be prepared to inject additional cash if necessary [p.19]. This isn't specified in the excerpts regarding exact financial requirements like net worth or liquid capital amounts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.36]. You may face competition from other franchisees and outlets owned by the company, as well as other channels of distribution or competitive brands controlled by the franchisor [p.38]. The franchisor retains the right to establish restaurants outside your protected territory and in non-traditional locations both inside and outside it [p.81].
What training and ongoing support does the franchisor provide?
The franchisor provides both initial and on-site training programs. Initial training lasts approximately 27 days or longer if required, and is mandatory for up to three individuals including the Operating Principal, Manager, and at least two other management personnel [p.33]. On-site training occurs one week before and up to one week after the restaurant opens, lasting about one to two weeks in the franchisor's discretion [p.84]. Additionally, the franchisor may conduct periodic refresher or additional training programs for new managers [p.14]. The costs associated with these trainings are covered by the franchisee, including travel, lodging, meals, and employment-related expenses for attendees [p.33, p.14].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, as of January 27, 2024, there were eight remaining stores. By April 15, 2024, one store had been closed, leaving seven stores. The exact number of outlets that have closed or been terminated isn't specified in these excerpts beyond this information. [p.254]
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information for existing outlets under certain conditions, but does not make any financial performance representations beyond what is included in the disclosure document. If you receive other financial performance information or projections of your future income, you should report it to the franchisor and relevant regulatory bodies as specified [p.51].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering for sale all types of merchandise, products, and services that the franchisor specifies periodically [p.21]. You may only purchase or lease certain equipment, materials, and supplies from suppliers designated by the franchisor [p.3, p.28]. This includes maintaining an adequate supply of items as specified by the franchisor to meet customer demands [p.21].