Surcheros
Surcheros offers fast casual Mexican restaurants serving high-quality fresh food in a family-friendly atmosphere. Known for blending Mexican, Tex-Mex, and Southwestern flavors, Surcheros franchises range from $301,000 to $1,761,500.
About Surcheros
Surcheros franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Surcheros restaurant ranges from $301,000 to $1,761,500. This includes an initial payment of $62,000 to $63,500 to the franchisor [p.1].
What is the initial franchise fee?
The initial franchise fee is $40,000 when paid upon signing the Franchise Agreement. However, if developing your first restaurant under a Development Agreement, the initial franchise fee is waived, and for additional restaurants, it is reduced to $20,000 [p.6, p.53].
What are the ongoing royalty and advertising fees?
The franchisee must pay a royalty fee equal to five percent (5%) of the weekly Gross Sales from the franchised restaurant [p.88]. Advertising costs are expensed as incurred and included in 'franchise development expenses' which are part of selling costs for income statement presentation [p.168, p.180].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the duration of the initial franchise agreement or the terms for renewal beyond stating conditions for renewal on page [p.84].
Can I sell or transfer my franchise, and what does that require?
According to the FDD excerpts, you can transfer your Franchise Agreement or Development Agreement. However, the franchisor has the right to transfer or assign the agreement to any person or legal entity without liability for past obligations after the effective date of the transfer. You are not required to pay a transfer fee if you transfer to a corporation or limited liability company wholly owned by you and your owners, or in certain cases involving death, incapacity, or bankruptcy of an owner [p.12]. This isn't specified in the excerpts regarding specific requirements for selling or transferring your franchise beyond these exceptions.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if you default on your obligations, as specified in [p.122]. This termination would typically occur prior to the expiration of the Initial Term of the Agreement.
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 under the Franchise or Development Agreement [p.29]. The agreement specifies that you have no exclusive territorial rights, and you can face competition from other franchisees, outlets owned by the company, or competitive brands controlled by them [p.29]. Additionally, the company retains the right to operate Surcheros restaurants at any location outside your approved territory both during and after the term of the agreement [p.30].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs as needed for new franchisees, which may include the Confidential Operations Manual, Training Manual, and other required tutorials [p.25]. Additionally, franchisees will attend a Training Program offered by SFL to learn methods, techniques, and systems associated with operating a Surcheros restaurant [p.187]. There is also an obligation for transferees' management-level employees to complete training programs then in effect for new franchisees [p.115].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were 17 franchised restaurants in operation [p.38]. This information does not specify the number of franchised outlets that have closed or been terminated; it only provides the current count of operating franchised restaurants.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information for existing Surcheros restaurants upon request, but does not make representations about future financial performance. This information can be shared if there is a reasonable basis and it must be included in the disclosure document [p.37]. Written substantiation for such financial performance representations will be made available upon reasonable request [p.43].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those products and services that the franchisor designates as required items, along with any optional items approved by the franchisor. You may not sell any products or services not listed without prior written consent [p.33]. To maintain quality standards, you must purchase Proprietary Items from approved suppliers designated by the franchisor [p.18, p.95], and generally, other supplies should also be purchased only from approved suppliers unless specific requirements are provided in writing [p.94].