About Tijuana Flats Franchise
Tijuana Flats is a Tex Mex restaurant franchise operating in the casual and fast casual dining space.
The menu features a wide variety of burritos, tacos, quesadillas, nachos, and other Tex Mex favorites, all prepared with a focus on fresh ingredients and bold flavors.
The brand has been franchising since 2003 under the parent company Tijuana Flats Restaurant, LLC, and has built a loyal following among customers who appreciate quality Tex Mex cuisine in a fun, laid back atmosphere.
Tijuana Flats Franchise Cost & Fees
Minimum Investment
$470K
Average Investment
$679K
Maximum Investment
$888K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 5% of Restaurant’s Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1.5% of Restaurant’s Gross Sales (Brand Fund contribution), subject to a Marketing Spending Requirement of 5.5% of Gross Sales (including Brand Fund and Local Marketing) | National brand fund |
| Total Investment Range | $469,550 – $888,000 | Includes build-out, inventory, working capital |
The investment range of $470K–$888K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Restaurant’s Gross Sales) and marketing fee (1.5% of Restaurant’s Gross Sales (Brand Fund contribution), subject to a Marketing Spending Requirement of 5.5% of Gross Sales (including Brand Fund and Local Marketing)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $35,000 | $35,000 |
| Leasehold improvements | $175,000 | $365,000 |
| Operating Assets | $172,000 | $275,000 |
| Signage | $6,100 | $19,000 |
| 3 months’ rent | $15,000 | $38,000 |
| Security deposit | $6,000 | $11,500 |
| Opening inventory and supplies | $5,000 | $12,000 |
| Grand opening marketing | $15,000 | $30,000 |
| Training expenses | $1,000 | $15,000 |
| Miscellaneous opening costs | $10,000 | $15,000 |
| Utility deposits | $250 | $2,500 |
| Business licenses, including liquor license | $200 | $10,000 |
| Insurance | $4,000 | $10,000 |
| Additional Funds – 3 months | $25,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500 (Development Rights Agreement), plus any transfer fees under previously signed franchise agreements |
| Renewal Fee | 50% of the then current initial franchise fee (currently $17,500) |
| Technology Fee | $187.62 per month (could increase) |
| Audit Fee | Cost of audit (due only if failure to timely furnish reports or understate Royalty or Brand Fund contribution by 2% or more) |
| Deadline extension fee (Development Rights Agreement) | $2,500 |
| Costs and attorneys’ fees (Development Rights Agreement) | Will vary under circumstances |
| Indemnification (Development Rights Agreement) | Will vary under circumstances |
| Costs and attorneys’ fees (Franchise Agreement) | Will vary under circumstances |
| Indemnification (Franchise Agreement) | Will vary under circumstances |
| SMG Program | $45 per month |
| Tijuana Flats Loyalty App | $153 per month |
| Ongoing training fees | $0 to $5,000 per year (could increase) |
| Management fee | 3% of Gross Sales plus direct costs and expenses |
| Relocation | Our reasonable costs incurred in your location, currently $3,000 to $7,500 (could increase) |
| Interest | 1.5% per month or highest interest rate the law allows |
| Insurance Reimbursement | Premiums plus our costs and expenses |
| Liquidated Damages | Average monthly Royalties and Brand Fund contributions owed during the 12 months before termination (or shorter period) multiplied by 36 or remaining months in term, whichever is less |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Varies, but initial training for Managing Owner and Operating Principal is mandatory before opening. Classroom training is 2 hours, on-the-job training is 88 hours. |
| Classroom Training | 2 hours |
| On-the-Job Training | 88 hours |
| Training Location | Orlando, Florida (company offices and an affiliate’s Tijuana Flats Restaurant) |
| Additional Training | Franchisor may require additional training programs at franchisee's expense if initial training is not completed to satisfaction (currently $1,000 per week). Ongoing training courses, programs, and conventions may be required for personnel, with reasonable fees charged (currently $0 to $5,000 per year). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | A circle with the Restaurant’s front entrance at its center and a radius of 3 miles (may be less in dense urban markets). |
| Description | The franchisee's "Territory" is a geographic area represented by a circle with the Restaurant’s front entrance at its center and a radius of 3 miles. However, in rare instances such as a dense urban market, the franchisor may grant a Territory with less than 3 miles. The franchisor and its affiliates may operate or authorize others to operate Tijuana Flats Restaurants at Non-Traditional Locations within the Territory, meaning the franchisee does not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels/competitive brands controlled by the franchisor. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years after the Opening Date |
| Renewal Term | 10 years |
| Renewal Fee | 50% of the then current initial franchise fee (currently $17,500) |
| Renewal Conditions | To renew, franchisee must: give written notice 12-15 months before term end, have substantially complied with the agreement, demonstrate right to maintain possession of site for 10 years, and have renovated/remodeled the Restaurant to current requirements. Must sign current form of franchise agreement and a general release. |
| Transfer Fee | $7,500 (for each Franchise Agreement and Development Rights Agreement) |
| Transfer Conditions | Conditions for non-control transfer include compliance with agreements, 30-day notice, general release, transferee not involved in competitive business, transferring owners comply with post-termination restrictions, and new ownership structure agreement. Control transfer has additional conditions like transferee completing initial training, repairing/upgrading the Restaurant, and agreeing to current franchise agreement terms. |
| Termination for Cause | Franchisor may terminate for various reasons including material misrepresentation, failure to complete training, failure to sign lease or open on time, abandonment of restaurant, unauthorized transfer of control, felony conviction, dishonest/unethical/illegal conduct, failure to maintain insurance, interference with inspections/audits, breach of other agreements, unauthorized use of confidential information, violation of law, repeated payment failures, or any other uncured breach within 30 days (or 72 hours for certain violations). |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, franchisee and owners may not have ownership interest in, provide services for, loan to, or divert business to a competitive business. After termination or expiration (without renewal), for 2 years, neither franchisee nor owners/immediate families may have ownership interest in or provide services for a competitive business at the Site, within 10 miles of the Site, or within 10 miles of any other Tijuana Flats Restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If the franchisee is an entity, an approved "Managing Owner" must own more than 50% of ownership interests, have authority to direct and control management/policies, and devote sufficient time and attention to the business. An approved "Operating Principal" must serve as the Restaurant’s general manager, devote all business time to on-premises management, and complete initial training. The Operating Principal need not have ownership interest. |
| Required Suppliers | Franchisees must purchase or lease all Operating Assets and other products and services according to System Standards, and if required, only from designated or approved suppliers/distributors, which may include the franchisor or its affiliates. Currently, certain food items, alcoholic and other beverages, supplies, smallwares, largewares, chemicals, hot sauces, and retail merchandise must be purchased from designated or approved suppliers. Food, beverages, and operating supplies must be bought through the approved distributor under the negotiated distribution agreement. Local Marketing may also require contracting with designated or approved suppliers. |
| Supply Restrictions | The franchisor may limit the number of approved suppliers, designate exclusive sources (which might be the franchisor or its affiliate), and refuse requests for new suppliers if it believes it's in the best interests of the Tijuana Flats Restaurant network. Purchases and leases from the franchisor or approved suppliers represent approximately 100% of total purchases and leases for establishing and operating the Restaurant. |
| Franchisor Revenue from Suppliers | The franchisor or its affiliates may derive revenue from franchisee purchases and leases, including from charging for products/services, promotional allowances, volume discounts, and other payments from designated/approved suppliers/distributors. An affiliate signed a 3-year distribution agreement in April 2020, collecting a 2% rebate on all purchases, which is currently remitted back to franchisees but may change. The affiliate also receives an average rebate of about $4.28 per gallon on certain beverages, used to offset systemwide advertising and marketing costs. |
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 obligation. |
Tijuana Flats Franchise Earnings — Item 19
Average Revenue
$1.3M
Median Revenue
$1.3M
Revenue Range
$758K – $2.7M
Sample Size
122 units
Past financial performance does not guarantee future results. Individual results will vary.
Tijuana Flats Litigation & Risk Flags
Clean Litigation RecordTijuana Flats has no pending litigation actions listed in their FDD.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Tijuana Flats System Growth
Total Units
124
Franchised
18
Company-Owned
106
Tijuana Flats currently operates 18 franchised locations and 106 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 0 | 135 |
| 2020 | 1 | 12 | 124 |
| 2021 | 2 | 2 | 124 |
Transfers: 0 | Closures: 2
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
$1.5M
Net Income
$884K
Total Assets
$23K
Audited by RSM US LLP for year ending December 31.
Tijuana Flats Franchise — FAQ
The total investment to open a Tijuana Flats franchise ranges from $469,550 to $888,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Tijuana Flats charges a royalty fee of 5% of Restaurant’s Gross Sales of gross sales, plus a 1.5% of Restaurant’s Gross Sales (Brand Fund contribution), subject to a Marketing Spending Requirement of 5.5% of Gross Sales (including Brand Fund and Local Marketing) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Tijuana Flats 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 Tijuana Flats to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Tijuana Flats franchise owners report average revenue of $1.3M and median revenue of $1.3M. This is based on a sample of 122 units. Past performance does not guarantee future results.
Tijuana Flats has been franchising since 2003. The FDD shows an investment range of $469,550-$888,000, a 5% of Restaurant’s Gross Sales royalty, and includes an 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 $35,000 and the total investment ranges from $469,550 to $888,000 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 Tijuana Flats and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Tijuana Flats or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com