About El Fresco Franchising Systems Franchise
El Fresco is a restaurant franchise that brings fresh, flavorful cuisine to its guests through a concept built around quality ingredients and a vibrant dining experience.
The brand began franchising in 2021, offering entrepreneurs an opportunity to own a restaurant with a distinctive menu and welcoming atmosphere.
The franchise fee is $30,000.
El Fresco Franchising Systems Franchise Cost & Fees
Minimum Investment
$354K
Average Investment
$480K
Maximum Investment
$606K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 5% of your gross sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of gross sales (Marketing Fund Contribution) and up to 3% of gross sales (Local Marketing/Required Spending) | National brand fund |
| Total Investment Range | $353,758 – $605,833 | Includes build-out, inventory, working capital |
The investment range of $354K–$606K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of your gross sales) and marketing fee (1% of gross sales (Marketing Fund Contribution) and up to 3% of gross sales (Local Marketing/Required Spending)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee (see Note 1) | $30,000 | $30,000 |
| Rent and Lease Security Deposit (see Note 2) | $4,958 | $18,333 |
| Utilities | $1,500 | $2,500 |
| Leasehold Improvements (see Note 3) | $170,000 | $308,000 |
| Market Introduction Program | $10,000 | $15,000 |
| Furniture, Fixtures, and Equipment | $75,000 | $125,000 |
| Computer Systems | $6,000 | $8,000 |
| Insurance | $300 | $4,000 |
| Signage | $8,000 | $12,000 |
| Office Expenses | $1,000 | $2,000 |
| Inventory | $10,000 | $15,000 |
| Licenses and Permits | $1,000 | $3,000 |
| Professional Fees (lawyer, accountant, etc.) | $1,000 | $3,000 |
| Travel, lodging and meals for initial training | $5,000 | $10,000 |
| Additional funds (for first 3 months) (see Note 4) | $30,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs we incur |
| Technology Fee | $175 per month |
| Audit Fee | Our actual cost |
| Market Cooperative Contribution | As determined by co-op. Currently, none. Maximum 5% of gross sales, not less than 1% of gross sales. If franchisor has majority vote, maximum 3% of gross sales. |
| Secret Shopper | $50 per month |
| Territory Violation Fee | $75 plus amount of Order |
| Replacement / Additional Training fee | Currently, $100 per day |
| Third party vendors | Pass-through of costs, plus reasonable administrative charge. Currently, none. |
| Software subscription | Currently, $300-$400 per month |
| Non-compliance fee | $500 (initial), then $250 per week |
| Reimbursement | Amount that we spend on your behalf, plus 10% |
| Late fee | $100 plus interest on the unpaid amount at a rate equal to 18% per year (or highest rate allowed by law) |
| Insufficient funds fee | $30 (or highest amount allowed by law) |
| Costs of collection | Our actual costs |
| Special support fee | Our then-current fee, plus our expenses. Currently, $600 per day. |
| Customer complaint resolution | Our expenses |
| Special inspection fee | Currently $600, plus our out-of-pocket costs |
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% |
| Liquidated damages | An amount equal to royalty fees and marketing fund contributions for the lesser of (i) 2 years or (ii) the remaining weeks of the franchise term. |
| Indemnity | Our costs and losses from any legal action related to the operation of your franchise |
| Prevailing party’s legal costs | Our attorney fees, court costs, and other expenses of a legal proceeding, if we are the prevailing party |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 36 hours of classroom training and 29 hours of on-the-job training for initial training program. Additional training program for franchisees (owner/operator/manager) consists of 30 hours of classroom training and 15 hours of on-the-job training. |
| Classroom Training | 66 |
| On-the-Job Training | 44 |
| Training Location | Chantilly, VA or Your Location |
| Additional Training | We may at any time require that the Principal Executive and/or any other employees complete training programs, in any format and in any location determined by El Fresco Franchising Systems. El Fresco Franchising Systems may charge a reasonable fee for any training programs. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | 50,000 to 100,000 population center with a 3-mile radius option from the location (for any suburban locations). |
| Description | Your territory will include a defined urban area and will be documented as a 50,000 to 100,000 population center with a 3-mile radius option from the location (for any suburban locations). Your territory will usually be specified as a radius around your location; however, we may use other boundaries (such as county lines or other political boundaries, streets, geographical features, or trade area). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from date of franchise agreement. |
| Renewal Term | up to 2 additional 5-year terms. |
| Renewal Conditions | Franchisee notifies El Fresco Franchising Systems of the election to renew between 90 and 180 days prior to the end of the term; Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with El Fresco Franchising Systems (or any of its affiliates) at the time of election and at the time of renewal; Franchisee has made or agrees to make (within a period of time acceptable to El Fresco Franchising Systems) renovations and changes to the Business as El Fresco Franchising Systems requires (including a Remodel, if applicable) to conform to the then-current System Standards; Franchisee and its Owners execute El Fresco Franchising Systems’ then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that Franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in this Section; Franchisee and each Owner executes a general release (on El Fresco Franchising Systems’ then-standard form) of any and all claims against El Fresco Franchising Systems, its affiliates, and their respective owners, officers, directors, agents and employees. |
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs we incur |
| Transfer Conditions | Pay transfer fee; buyer meets our standards; buyer is not a competitor of ours; buyer and its owners sign our then-current franchise agreement and related documents (including personal guaranty); you’ve made all payments to us and are in compliance with all contractual requirements; buyer completes training program; you sign a general release; business complies with then-current system specifications (including remodel, if applicable). |
| Termination for Cause | Non-payment by you (10 days to cure); violate franchise agreement other than non-curable default (30 days to cure). Misrepresentation when applying to be a franchisee; knowingly submitting false information; bankruptcy; lose possession of your location; violation of law; violation of confidentiality; violation of non-compete; violation of transfer restrictions; slander or libel of us; refusal to cooperate with our business inspection; cease operations for more than 5 consecutive days; three defaults in 12 months; cross-termination; charge or conviction of, or plea to a felony, or commission or accusation of an act that is reasonably likely to materially and unfavorably affect our brand; any other breach of franchise agreement which by its nature cannot be cured. |
| Non-Compete Period | For two years |
| Non-Compete Details | Neither you, any owner of the business, or any spouse of an owner may have ownership interest in, lend money or provide financial assistance to, provide services to, or be employed by a competitor located within five miles of your former territory or the territory of any other El Fresco Mexican Grill business operating on the date of termination. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You are not required to participate personally in the direct operation of your business, but we recommend it. You must designate a Principal Executive with at least 10% ownership, responsible for the business, and who completes initial and future training programs and attends required meetings. On-premises supervision is not required by the owner, but recommended, and can be done by a general manager who completed training. General managers may be required to sign confidentiality and non-compete agreements. |
| Required Suppliers | Our affiliate is currently a supplier of the spice packets that you must purchase, and we reserve the right to be a supplier of other items (or the sole supplier) of a good or service in the future. |
| Supply Restrictions | We have the right to require you to purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating your business (1) either from us or our designee, or from suppliers approved by us, or (2) according to our specifications. |
| Franchisor Revenue from Suppliers | Coca-Cola, PFG and P-Plus Packaging are vendors which will pay us a rebate based on required purchases you will make with them. The rebate is based on the total volume of ordering and how many cases are ordered from each vendor during a particular quarter. Additionally, we will receive payment on required purchases made by franchisees from our affiliate for the purchase of the spice bags. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligations. |
El Fresco Franchising Systems Franchise Earnings — Item 19
El Fresco Franchising Systems does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
El Fresco Franchising Systems does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
El Fresco Franchising Systems Litigation & Risk Flags
Clean Litigation RecordEl Fresco Franchising Systems has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
El Fresco Franchising Systems System Growth
Total Units
4
Franchised
3
Company-Owned
1
El Fresco Franchising Systems currently operates 3 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 0 | 2 |
| 2022 | 1 | 1 | 2 |
| 2023 | 2 | 0 | 4 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$151K
Net Income
$61K
Total Assets
$128K
Audited by Naper CPA Group for year ending December 31.
El Fresco Franchising Systems Franchise — FAQ
The total investment to open a El Fresco Franchising Systems franchise ranges from $353,758 to $605,833, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
El Fresco Franchising Systems charges a royalty fee of 5% of your gross sales of gross sales, plus a 1% of gross sales (Marketing Fund Contribution) and up to 3% of gross sales (Local Marketing/Required Spending) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the El Fresco Franchising Systems Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from El Fresco Franchising Systems to ensure you have the most up-to-date version.
El Fresco Franchising Systems does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
El Fresco Franchising Systems has been franchising since 2021. The FDD shows an investment range of $353,758-$605,833, a 5% of your gross sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $353,758 to $605,833 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from El Fresco Franchising Systems and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with El Fresco Franchising Systems or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com