Qdoba Mexican Eats 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
$253,000 - $1,307,000
Royalty fee
5.00%

Qdoba Mexican Eats: Redefining Fast-Casual Mexican Cuisine

Based in San Diego, California, Qdoba Mexican Eats is a renowned fast-casual restaurant chain with locations throughout the United States and Canada.

Founded in 1995 by Anthony Miller and Robert Hauser, Qdoba began its journey in the lively city of Denver, Colorado.

The restaurant chain is known for its authentic Mexican-inspired cuisine, offering a variety of dishes such as burritos, nachos, taco salads, and quesadillas, among other delectable options.

Most Qdoba Mexican Eats locations provide chips along with a wide selection of sauces, dips, and refreshing drinks. Certain locations also offer fine wine, margaritas, beer, and an enticing range of other alcoholic beverages.

Since venturing into franchising in 1997, Qdoba Mexican Eats has expanded significantly. The chain emphasizes fresh ingredients and customizable menu options, catering to diverse tastes and dietary preferences. Their commitment to quality and customer satisfaction has garnered a loyal following. Additionally, Qdoba supports local communities through various initiatives and partnerships, contributing to its positive reputation and growth.

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.

Qdoba Mexican Eats offers 2 types of franchises:

Type of Restaurant Initial Investment
Qdoba Restaurant $489,200 to $1,307,000
Non-Traditional Qdoba Restaurant $252,800 to $917,700

We are summarizing below the main costs associated with opening a tradtional Qdoba Restaurant franchise.

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

Traditional Qdoba Restaurant

Type of Expenditure Amount
Franchise Fee $30,000
Development costs: plans, legal fees, permits $10,000 - $50,000
Leasehold improvements $180,000 - $500,000
Furnishings, fixtures and equipment $185,000 - $380,000
Signage $5,000 - $50,000
IT and other Systems $33,700 - $84,000
Opening inventory $5,000 - $10,000
Travel and living expenses while training Varies
Miscellaneous preopening expenses $5,000 - $15,000
Grand opening advertising $5,000 - $25,000
Insurance $5,000 - $10,000
Liquor license Varies depending on location
Real property lease / purchase costs Varies depending on location
Business licenses, health permits and similar permits $500 - $3,000
Additional funds – 3 months $25,000 - $150,000
TOTAL ESTIMATED COST (excluding real property and liquor license costs) $489,200 - $1,307,000

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Number of units

2023
Franchised units

380

390

342

Company-owned units

346

333

289

Total units

726

723

631

Franchise Disclosure Document

Training 

The Qdoba Mexican Eats Franchise provides comprehensive training programs to ensure that franchisees and their staff are well-prepared to operate their restaurants successfully. The training includes:

  1. Initial Training Program: This typically consists of classroom and on-the-job training that covers various aspects of restaurant operations, including food preparation, customer service, and management practices. The initial training program often lasts several weeks.
  2. Operational Training: This training focuses on the day-to-day operations of the restaurant. It includes detailed instructions on Qdoba's recipes, cooking techniques, food safety standards, and equipment use.
  3. Management Training: Franchisees and their management teams receive training on business management skills such as inventory control, staff scheduling, financial management, and marketing strategies.
  4. Ongoing Support and Training: Qdoba provides continuous support and training updates to ensure that franchisees stay informed about new menu items, operational procedures, and industry best practices. This can include regular visits from field support representatives, webinars, and refresher courses.
  5. Training Manuals and Resources: Franchisees receive comprehensive training manuals and resources that they can refer to as needed. These materials cover all aspects of running a Qdoba restaurant and are regularly updated.
  6. Opening Assistance: Support is provided during the restaurant opening phase, including assistance with the grand opening event, ensuring that the staff is well-trained and that all operations are running smoothly from the start.

Territory Protection

Franchisees are provided specific rights within a designated geographical area known as the "Development Area," which is detailed in an exhibit attached to the Development Agreement.

The size of the Development Area varies depending on factors like population density. However, franchisees are not granted exclusive territory rights. They may encounter competition from other franchisees, Qdoba-owned outlets, or other distribution channels of competing brands managed by Qdoba.

Additionally, during the Franchise Agreement term, Qdoba will not establish, nor permit another franchisee to establish, a new Qdoba restaurant within the franchisee's Protected Territory without the franchisee's consent.

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