About Tio Juan's Margaritas Mexican Restaurant Franchise
Tio Juan's Margaritas Mexican Restaurant is a casual dining franchise featuring authentic Mexican inspired cuisine in a festive, lively atmosphere.
The menu highlights traditional Mexican dishes prepared daily with fresh ingredients, complemented by signature margaritas made with real lime and lemon juices.
The brand has been franchising since 2009 under the parent company Margaritas Management Group, Inc.
Tio Juan's Margaritas Mexican Restaurant Franchise Cost & Fees
Minimum Investment
$1.4M
Average Investment
$2.1M
Maximum Investment
$2.9M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 5% of your weekly Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 4% of weekly Gross Sales (currently 2%, split 1.5% local marketing, 0.5% Brand Fund) | National brand fund |
| Total Investment Range | $1,375,500 – $2,878,600 | Includes build-out, inventory, working capital |
The investment range of $1.4M–$2.9M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of your weekly Gross Sales) and marketing fee (Up to 4% of weekly Gross Sales (currently 2%, split 1.5% local marketing, 0.5% Brand Fund)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Per Location Development Fee (2) | $10,000 | $10,000 |
| Initial Franchise Fee | $40,000 | $40,000 |
| Real Estate (3) | $0 | $0 |
| Construction (4) | $400,000 | $1,575,000 |
| Travel and Living Expenses while Training (5) | $10,000 | $20,000 |
| Furnishing, Fixtures and Equipment (6) | $425,000 | $625,000 |
| Signage | $20,000 | $40,000 |
| Initial Inventory and Supplies (7) | $35,000 | $43,000 |
| Miscellaneous Opening Costs (8) | $240,000 | $310,000 |
| Insurance (9) | $20,000 | $40,000 |
| Permits and Liquor Licenses (10) | $0 | $0 |
| Gift Card Program | $500 | $600 |
| Additional Funds -- 3 months after opening (11) | $175,000 | $175,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Development Agreement: Greater of 20% of total Development Fees paid or $10,000. Franchise Agreement: 25% of then-current Initial Franchise Fee. |
| Audit Fee | Full cost of inspection or audit, including travel, lodging, meals, wages of representatives, and reasonable professional fees. |
| Grand Opening | Minimum $10,000 |
| Site Selection Assistance | Reimbursement for travel costs, lodging, meals and wages of our representative for second or subsequent on-site evaluation |
| Collection Costs | All costs and expenses, including reasonable professional fees |
| Training | Actual expenses incurred by you and your employees (salaries, benefits, travel, living, other expenses) for additional training |
| Opening Training | Actual travel, food, lodging expenses, and $20.00 per diem for miscellaneous expenses for Opening Team trainers |
| Market Research and Testing | Proportionate cost of conducting test marketing programs |
| POS System Technical Assistance | Our then-current hourly rate, currently $150 per hour (if requested) |
| New Product and Supplier Testing | Reasonable fee, not to exceed actual cost of inspecting and testing, including personnel and travel costs |
| Reimbursement of Insurance Costs | Cost of insurance, plus a reasonable fee for our services in procuring the insurance |
| Relocation | Reasonable fee, plus our reasonable expenses incurred in connection with consideration of the relocation request |
| Taxes | Reimbursement for any taxes, fees or assessments imposed on us by reason of our acting as franchisor or licensing the Proprietary Marks |
| Customer Complaint Resolution | Actual cost to satisfy your customers |
| Interim Operation of the Franchised Restaurant (Temporary Management) | Reasonable management fee not to exceed 7% of weekly gross sales for our services in addition to reimbursement of our expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 11 weeks for your first Franchised Restaurant, 9 weeks for subsequent Franchised Restaurants. |
| Classroom Training | 110 hours (for Operating Principal) |
| On-the-Job Training | 340 hours (for Operating Principal) |
| Training Location | Dover, New Hampshire; Augusta, Maine; and Framingham, Massachusetts. |
| Additional Training | Franchisor may require franchisees, managerial personnel, training personnel, and/or experienced staff to attend various training courses, conventions, regional meetings, and conferences periodically. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Under the Development Agreement, you receive a Development Area, mutually agreed upon, described in Exhibit A. Franchisor reserves rights to operate/license others outside the Development Area, and after termination/expiration, inside the Development Area. Franchisor can conduct any business activities in any geographic area regardless of proximity or economic effect. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from the date the Franchised Restaurant opens |
| Renewal Term | Two successor franchise terms, each for 5 years |
| Renewal Conditions | Timely notice, substantial compliance with expiring agreement, no default under any agreements (including real estate, equipment, financing, vendor/supplier), secure landlord right to continue operation for full successor term, renovate and modernize to then-current image, sign general release, complete additional training, sign then-current standard form of Franchise Agreement (terms may differ materially). |
| Transfer Fee | Development Agreement: Greater of 20% of total Development Fees paid or $10,000. Franchise Agreement: 25% of then-current Initial Franchise Fee. |
| Transfer Conditions | Compliance with all agreements, payment of applicable transfer fee, simultaneous transfer of all agreements in Development Area (if applicable), qualified transferee, sign assignment agreement, sign general release, sign owner's acknowledgment (if applicable), reasonable sales price. For partial interest: notice, copies of contracts, transfer fee, compliance with agreements, general release, owner's acknowledgment (if applicable). |
| Termination for Cause | Franchisor may terminate without opportunity to cure for events like failure to obtain site acceptance or open by deadline, construction before signing agreement, insolvency/bankruptcy, levy against property, material breach of covenants (Section 10/17), unauthorized transfer, material misrepresentation/omission, falsifying reports, conviction of crime harming goodwill, default beyond cure period under other agreements, 2+ default notices in 12 months, failure to comply with other provisions within 15 days notice, voluntary termination of another Franchise Agreement, interference with franchisor relations. |
| Non-Compete Period | 2 years |
| Non-Compete Details | For 2 years following expiration, termination, or transfer, you will not own, manage, engage in, advise, make loans to, be employed by, assist or have any interest in (a) any business that owns or offers franchises or licenses in a Competitive Business or (b) any Competitive Business that is (or is intended to be) located at or within 10 miles of the border of the Development Area or within 10 miles of any other Margaritas Restaurant. Also, cannot sell/assign/lease/transfer Authorized Site to a Competitive Business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You are not obligated to participate personally in the day-to-day operation. Each restaurant must be under the personal, on-premises supervision of an Operating Principal, general manager, assistant manager, kitchen manager, or shift leader. The Operating Principal must be an Owner, devote full-time efforts, complete IFOP, and have authority over business decisions. |
| Required Suppliers | Franchisor may require purchases from consented suppliers (which may include franchisor or its affiliates) or from a single/limited number of designated sources, and products must meet franchisor specifications. |
| Supply Restrictions | The source for virtually all of your purchases is restricted in some way. Establishment purchases: 10% from us, 40% from approved suppliers, 90-95% in accordance with specifications. Operation purchases: 5% from us, 70% from approved suppliers, 90-95% in accordance with specifications. |
| Franchisor Revenue from Suppliers | In our fiscal year end December 27, 2022, neither we nor our affiliate(s) earned any revenue, rebates or other material considerations from required franchisee purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer any direct or indirect financing. We do not guarantee your note, lease or obligation. |
Tio Juan's Margaritas Mexican Restaurant Franchise Earnings — Item 19
Average Revenue
$2.3M
Median Revenue
$2.2M
Revenue Range
$729K – $3.9M
Sample Size
7 units
Past financial performance does not guarantee future results. Individual results will vary.
Tio Juan's Margaritas Mexican Restaurant Litigation & Risk Flags
Clean Litigation RecordTio Juan's Margaritas Mexican Restaurant 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.
Tio Juan's Margaritas Mexican Restaurant System Growth
Total Units
25
Franchised
7
Company-Owned
18
Tio Juan's Margaritas Mexican Restaurant currently operates 7 franchised locations and 18 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 1 | 2 | 25 |
| 2021 | 0 | 0 | 25 |
| 2022 | 0 | 0 | 25 |
Transfers: 2 | 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
$38K
Net Income
$381K
Total Assets
$247K
Audited by RSM US LLP for year ending December 25, 2022.
Tio Juan's Margaritas Mexican Restaurant Franchise — FAQ
The total investment to open a Tio Juan's Margaritas Mexican Restaurant franchise ranges from $1,375,500 to $2,878,600, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Tio Juan's Margaritas Mexican Restaurant charges a royalty fee of 5% of your weekly Gross Sales of gross sales, plus a Up to 4% of weekly Gross Sales (currently 2%, split 1.5% local marketing, 0.5% Brand Fund) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Tio Juan's Margaritas Mexican Restaurant 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 Tio Juan's Margaritas Mexican Restaurant to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Tio Juan's Margaritas Mexican Restaurant franchise owners report average revenue of $2.3M and median revenue of $2.2M. This is based on a sample of 7 units. Past performance does not guarantee future results.
Tio Juan's Margaritas Mexican Restaurant has been franchising since 2009. The FDD shows an investment range of $1,375,500-$2,878,600, a 5% of your weekly 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 $40,000 and the total investment ranges from $1,375,500 to $2,878,600 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 Tio Juan's Margaritas Mexican Restaurant and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Tio Juan's Margaritas Mexican Restaurant or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com