Barberitos Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$497,000

-

$619,000

LOCATIONS

45

Emily

Updated

April 11, 2024

Is

Barberitos

a franchise?

Yes,
Barberitos
currently
accepts
franchise
applications

Barberitos stands out in the fast-casual dining sector, particularly for its commitment to Southwestern-inspired cuisine. Founded by Downing Barber in February 2000, this franchise began in Athens, Georgia, with a clear mission to introduce fresh, flavorful, and healthier food options to the American public. 

The concept was inspired by Downing Barber's experiences in the Southwest, especially his appreciation for mission-style burritos known for their freshness, nutritional value, and customizability. This inspiration led to the establishment of the inaugural Barberitos restaurant, setting a precedent for the brand's growth and expansion ethos.

The franchise started offering franchising opportunities in 2002, a strategic move that followed the successful establishment of the original restaurant. Each Barberitos outlet is dedicated to upholding the brand's commitment to freshness, exemplified by daily preparations of burritos, tacos, quesadillas, nachos, and salads with ingredients like hand-smashed guacamole, freshly chopped vegetables, and house-made salsas and marinades.

Barberitos differentiates itself in the market by focusing on health-conscious offerings, featuring meals that are low in calories and fat, alongside a selection of gluten-free options. This approach aligns with the brand's philosophy of providing "food that's fresh, fast, and flavorful," a guiding principle that has propelled Barberitos from its inception to become a respected name in the regional fast-casual dining scene​.

How many

Barberitos

franchises

are there?

In 2022, there were
45
outlets in
the United
States, of which
42
are franchises, and
3
are corporate-owned.

What are the

Barberitos

franchise

fees?

Advertising fee

5.00%

Initial Franchise Fee

The Initial Franchise Fee for a Barberitos restaurant is $35,000, payable in a lump sum upon signing the franchise agreement.

Royalty Fee

Franchisees must pay a Royalty Fee of 6% of Net Sales weekly, supporting the ongoing use of the Barberitos brand and system.

Advertising Fee

A contribution of 3% of Net Sales is required for the Brand Development Fund, payable weekly alongside the royalty fees.

Technology Bundle Fee

The monthly Technology Bundle Fee ranges from $475 to $1,200, covering essential technological services for the operation of the restaurant.

Transfer Fee

The Transfer Fee varies, being 50% of the then-current initial franchise fee when transferring to an existing franchisee, or 75% if transferring to a new owner. A reduced fee of $2,000 applies for ownership transfers among existing partners.

Renewal Fee

A Renewal Fee of $17,500 is charged for franchise agreement renewal, ensuring the continuation of the franchise relationship.

Local Advertising Requirement

Franchisees are obligated to spend a minimum of $500 per month on local advertising to promote their specific location.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Barberitos

franchise?

It costs between
$497,000
and
$619,000
to start a
Barberitos
franchise.
Type of Expenditure Amount
Initial Franchise Fee $35,000
Architectural Plan Review $0 - $1,000
Architect Fees $7,000 - $10,000
Permits & License Fee $1,500 - $5,000
Leasehold Improvements $250,000 – $300,000
Equipment $100,000 - $115,000
Furniture $8,000 - $15,000
Millwork $25,000 - $45,000
Smallwares $20,000 - $25,000
Exterior Signage $7,000 - $14,000
Interior Signage and Graphics $3,000 – $5,000
Technology Systems $20,300 - $25,200
Grand Opening Marketing $15,000
Uniforms, Menu Materials, Office Supplies $1,270 - $5,560
Travel & Living Expenses While Training $0 - $7,500
Opening Inventory $7,500 - $12,000
Insurance $1,500 - $3,500
Additional Funds – 3 months $15,000 - $35,000
TOTAL (excluding tenant allowance) $517,070 - $673,760
Total Project Cost $497,070 - $618,760

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Barberitos

provide

training

to its

franchisees?

Yes,
Barberitos
provides
training

Barberitos provides a structured training program for franchisees and their management personnel, ensuring they are well-equipped to operate their franchise successfully

Initial Training Program

Before the commencement of operations, Barberitos offers an initial training program to the franchisee and up to three of the franchisee's management personnel at no additional charge, provided they attend the program simultaneously. This training covers critical areas such as financial controls, bookkeeping procedures, food preparation, service and operational techniques, marketing and advertising strategies, sanitation and maintenance procedures, and the maintenance of quality standards.

The program combines classroom instruction with practical experience and includes a two-day sanitation certification course. All training-related expenses, such as transportation, lodging, meals, uniforms, and salaries during the training period, are the responsibility of the franchisee.

Refresher Training Programs

Barberitos may periodically offer refresher training programs or seminars, which franchisees, their managers, and/or management personnel might be required to attend. These programs are designed to update and reinforce the initial training, ensuring that franchisees and their teams stay current with any changes in operations, marketing strategies, and other relevant aspects of running a Barberitos restaurant.

Attendance at these programs is at the franchisee's expense, and the franchisee may not be required to attend more than four such programs in a calendar year, not exceeding eight business days in total duration.

Additional Training and Support

Should a franchisee or their management personnel fail to complete the initial training program to Barberitos' satisfaction, they may be required to attend or repeat the course, or a replacement may be sent to the next available training program. Barberitos provides ongoing support and updates to training materials as they are developed, ensuring that franchisees have access to the latest information and resources to maintain the high standards expected of a Barberitos restaurant.

Does

Barberitos

provides

territory

protection?

Barberitos does not provide franchisees with an exclusive territory. Franchisees may face competition from other franchisees, from outlets owned directly by Barberitos, or from other channels of distribution or competitive brands controlled by Barberitos.

The territory's scope and size are determined at Barberitos' sole discretion, based on factors such as general location, traffic patterns, parking availability, and area demographics, among others. The territory may sometimes be limited only to the specific location accepted for the restaurant.

Additionally, if a restaurant is located in a "captive location" such as a shopping center, amusement park, sports stadium, or airport, Barberitos reserves the right to operate or license others to use the system and proprietary marks for the operation of other restaurants within the franchisee's territory.

Can a

Barberitos

franchise

be run as

a passive

investment?

The Barberitos franchise system requires franchisees or one of their principals (if the franchisee is a corporate entity) to devote their best efforts to the management and operation of their restaurant. While franchisees have the option to delegate the daily supervision of their restaurant to a manager, this manager must successfully complete Barberitos' initial training before assuming any managerial responsibilities.

The restaurant must always be managed by the franchisee or a manager who has successfully completed the required training.This structure indicates that the Barberitos franchise system is designed for franchisees who are actively involved in the management and operation of their franchise, with limited scope for passive investment or absentee ownership.

The emphasis on active management and the requirement for the manager to complete specific training highlight the franchisor's commitment to maintaining operational standards and brand consistency across all locations.

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