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Baja Fresh Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What is the Initial Investment for a Baja Fresh Franchise?
To open a Baja Fresh franchise, the initial investment ranges from $202,200 to $1,071,190. This includes a franchise fee of $30,000. Prospective franchisees should also prepare for ongoing costs, such as a 5% royalty fee and a 3% marketing fee. It's crucial to have cash available between $30,000 and $42,500 and meet a net worth requirement of $500,000 to $1,000,000 to qualify for this opportunity.
What Are the Revenue Expectations for a Baja Fresh Franchise?
Baja Fresh franchises can expect an average annual revenue of $812,508, with a median of $753,303. Revenue can vary significantly, with the lowest reported at $483,763 and the highest reaching $1,322,155. Understanding these figures can help franchisees assess potential profitability and set realistic financial goals for their business.
How Quickly Can You Break Even with a Baja Fresh Franchise?
Franchisees can anticipate breakeven within approximately 18 months of operation. The investment payback period is estimated at around 20 months. These timelines are essential for potential owners to understand, as they provide insights into how long it may take to recover their initial investment and start generating profit.
What Are the Operating Costs for a Baja Fresh Franchise?
The average annual operating expenses for a Baja Fresh franchise amount to $78,909. Key expenses include wages and benefits at $46,544, rent at $9,197, and advertising and marketing at $3,322. Understanding these costs is vital for franchisees to effectively manage their operations and maintain profitability in a competitive market.
Baja Fresh Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Baja Fresh Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 100 | 97 | 84 |
| Net Change YoY | -3 | -13 | |
| Franchised Units | 96 | 90 | 77 |
| Net Change YoY | -6 | -13 | |
| Corporate Units | 4 | 7 | 7 |
| Net Change YoY | 3 | 0 |
Company Background
Baja Fresh is a fast-casual Mexican restaurant chain known for its commitment to fresh ingredients and bold flavors. Founded in 1990 in California, Baja Fresh has built a reputation for serving high-quality Mexican dishes such as burritos, tacos, and enchiladas, all made from scratch daily. With a focus on health-conscious options and a vibrant dining experience, Baja Fresh aims to provide guests with authentic Mexican cuisine in a welcoming environment.
Franchise Opportunity
Owning a Baja Fresh franchise presents a unique opportunity for aspiring entrepreneurs to tap into the growing fast-casual dining sector. With an initial investment range of $202,200 to $1,071,190, franchisees can leverage Baja Fresh's established brand and operational support. The franchise model offers robust training programs and marketing assistance, equipping owners with the tools needed for success in a competitive market.
Financial Overview
Baja Fresh franchises have a range of financial metrics that showcase the potential for profitability. The average annual revenue per unit stands at $812,508, with a median revenue of $753,303. Franchisees can expect a breakeven time of approximately 18 months and an investment payback period of around 20 months, making it a viable option for those looking to achieve a strong return on investment.
Royalties and Fees
Franchisees are required to pay a royalty fee of 5% of gross sales, along with a marketing fee of 3%. The initial franchise fee is set at $30,000, which grants access to the Baja Fresh brand and its operational systems. These fees contribute to the ongoing support and marketing efforts that help franchisees attract and retain customers.
Operational Support
Baja Fresh provides comprehensive operational support to franchisees, including training in areas such as food preparation, customer service, and inventory management. Franchisees benefit from a well-defined operational manual and ongoing assistance from the corporate team, ensuring they have the resources necessary to run their business efficiently and effectively.
Growth Potential
With a decreasing number of franchised units from 96 in 2020 to 77 in 2022, Baja Fresh presents an opportunity for new franchisees to enter a market with potential for revitalization and growth. The brand's focus on fresh ingredients and healthy eating aligns with current consumer trends, positioning franchisees to capitalize on the increasing demand for quality fast-casual dining options.
Frequently Asked Questions
The initial investment for a Baja Fresh franchise ranges from $202,200 to $1,071,190. This includes the initial franchise fee of $30,000 and other startup costs such as equipment and leasehold improvements.