Baja Fresh Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$30,000
Investment required
$208,000 - $1,113,000
Royalty fee
5.00%

Baja Fresh: A Leader in Fresh Mexican Cuisine Since 1990

Founded in 1990, Baja Fresh has built a reputation as a standout franchise in the fast-casual dining industry, known for its steadfast dedication to delivering fresh and high-quality Mexican food. Unlike many of its competitors, Baja Fresh distinguishes itself by eliminating the use of freezers, microwaves, and can openers in its kitchens, ensuring that only fresh, handpicked ingredients are used in its dishes.

This commitment to freshness sets Baja Fresh apart from the industry standard, which often depends on pre-packaged and frozen items. As a result, Baja Fresh appeals to health-conscious diners who prioritize both nutrition and flavor.

Headquartered in Scottsdale, Arizona, and managed by MTY Franchising USA, Inc., Baja Fresh has made a notable mark in the market with its fresh twist on traditional Mexican cuisine. The franchise offers a diverse menu featuring Mexican favorites such as burritos, tacos, and salads, along with a variety of signature dishes that cater to a broad audience looking for healthier dining options.

Baja Fresh started franchising soon after it was established, offering investors the chance to join the growing fast-casual restaurant sector. Highlighting the increasing popularity of Mexican food in the United States, Baja Fresh has positioned itself as a leading provider of fresh, top-notch Mexican meals.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Baja Fresh offers 2 types of franchises:

Type of Program Initial Investment
Traditional Restaurant Program $320,560 to $1,112,640
Non-Traditional Restaurant Program $208,200 to $744,450

We are summarizing below the main costs associated with opening a Traditional  Baja Fresh restaurant franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Baja Fresh Traditional Restaurant

Type of Expenditure Amount (Low - High)
Build-Out Costs
Architect; Engineer; Drawings
$15,750 - $26,000
Permits $5,000 - $32,000
Leasehold/Construction
Base building, Interior Improvements; Lighting; Tile; Millwork; Seat Fee Assessment
$84,000 - $532,500
Furniture, Fixtures, Equipment & Signage
Signage
$10,500 - $17,850
POS System $11,000 - $20,000
Computer System $800 - $1,200
Kitchen Equipment; Smallwares; Furniture $95,000 - $303,000
Inventory; Uniforms $4,000 - $8,000
Advertising $2,500 - $10,000
Pre-opening training expenses $11,610 - $21,090
Lease & Security Deposits $10,000 - $15,000
Insurance - Liability & Workers compensation (initial deposit) $2,000 - $4,000
Legal Fees $1,000 - $3,000
Initial Franchise Fee $12,000 - $30,000
Depository Account $3,000
Lease Review Fee $0 - $2,500
Grand Opening Marketing $10,000
Additional Funds (3 months) $42,400 - $73,500
Grand Total $320,560 - $1,112,640

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Number of units

2024
Franchised units

90

77

67

Company-owned units

7

7

11

Total units

97

84

78

Franchise Disclosure Document

Training 

The franchisor offers an extensive training program for franchisees, which includes "In-Store Training" and "New Owner Training."

In-Store Training: This segment includes around 240 hours of practical training, where participants learn the operational aspects of running the franchise. It covers essential elements of day-to-day operations such as food preparation, customer service, and store management.

New Owner Training: This part consists of approximately 40 hours, focusing on the core principles of managing the franchise. Depending on the franchisor's preference, this training can be conducted online or in person. In-person training typically takes place at the franchisor's training and education center in Scottsdale, Arizona, or at another specified location.

Franchisees are responsible for covering all costs related to transportation, food, lodging, and other personal expenses during the training. The program is mandatory for up to two individuals involved with the franchise, with at least one having an ownership interest.

Additionally, the franchisor may require franchisees and their managers to participate in extra training sessions if the business does not meet the franchisor's system standards.

The franchisor also offers refresher or supplementary training programs, conferences, and seminars on various topics such as new products, sales and marketing strategies, and merchandising techniques. These sessions are mandatory and usually held in the metropolitan Phoenix, Arizona area or other locations within the United States as designated by the franchisor.

Territory Protection

The Baja Fresh Franchise Disclosure Document specifies that even if a franchise agreement includes a designated territory for the franchisee, the franchisor retains the right to compete within that area. This means the franchisor can open its own outlets or grant franchises to other individuals within the existing franchisee's territory.

While there might be some level of territorial consideration, it does not offer absolute protection from competition by the franchisor within that designated territory.

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