Island Empanada franchise
2023 filing · April 29, 2023Growing
Island Empanada at a glance
A quick-service restaurant specializing in empanadas and other Latin American food. At the end of 2022 there were 9 Island Empanada locations in the US, 7 franchised and 2 company-owned.
The business
- Franchisor
- Island Empanada Franchising, Inc
- The company that sells the franchises
- Franchisor based in
- Lake Ronkonkoma, New York
- Typical size
- About 1,100 sq ft
What you pay
- Cost to open
- $137K–$250K
- Fee, build-out and opening working capital
- Franchise fee
- $15,000
- Paid once, when you sign
- Royalty
- 4%
- The greater of 4% of gross revenues or $300 a week, paid weekly, plus currently 1% to the brand development fund (up to 2%)
- Brand fund
- 1%
- 1% of gross revenue, paid weekly; it can rise to 2%
- Renewal fee
- See terms
- 25% of the then current franchise fee; subject to a $2,500 minimum.
- Agreement length
- 10 years
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 9
- Franchised and company-owned
- Franchised
- 7
- Company-owned
- 2
- Change in 3 years
- +6
- Franchised locations, 2020–2022
- States
- 1
- Most in New York
From Island Empanada Franchising, Inc’s 2023 filing; revenue and net income from its audited financial statements, page 41; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
Island Empanada among all franchises with the same figure.
| Figure | Island Empanada | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $193,490 | Costs less than 70% of franchises |
| Franchise feePaid once, when you sign | $15,000 | Lower than 93% of franchises |
| RoyaltyShare of sales paid to the franchisor | 4% | Lower than 93% of brands with a set rate |
| US locationsFranchised and company-owned | 9 | Fewer than 63% of franchises |
How much a Island Empanada franchise costs
Opening one Island Empanada costs an estimated $137,080 to $249,900. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are equipment ($40,000 to $80,000) and construction, leasehold improvements, furniture and fixtures ($35,000 to $65,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $15,000 | $30,000 | |
| Construction, Leasehold Improvements, Furniture and Fixtures | $35,000 | $65,000 | |
| Equipment | $40,000 | $80,000 | |
| Signage (interior and exterior) | $2,500 | $3,800 | |
| Computer, Software and Point of Sales System | $5,900 | $9,800 | |
| Opening Inventory | $1,500 | $3,500 | |
| Rent Deposits | $6,300 | $8,300 | |
| Utility Deposits | $2,900 | $3,100 | |
| Insurance Deposits and Premiums | $500 | $3,900 | |
| Pre-opening Travel Expense | $700 | $1,000 | |
| Grand Opening Advertising | $5,000 | ||
| Professional Fees | $4,580 | $9,500 | |
| Business Permits and Licenses | $1,000 | $2,000 | |
| Liquor License | $0 | $3,500 | |
| Printing, Stationery and Office Supplies | $1,200 | $1,500 | |
| Additional funds – 3 Months | $15,000 | $20,000 | |
| Total | $137,080 | $249,900 | |
Source: Island Empanada Franchising, Inc, 2023 filing, page 13
Island Empanada franchise fee
The franchise fee is $15,000. You pay it when you sign the franchise agreement.
Source: Island Empanada Franchising, Inc, 2023 filing, page 8
Royalty and ongoing fees
| Royalty | The greater of 4% of gross revenues or $300 a week, paid weekly, plus currently 1% to the brand development fund (up to 2%). |
|---|---|
| Brand or marketing fund | 1% of gross revenue, paid weekly; it can rise to 2%. |
| Renewal Fee | 25% of the then current franchise fee; subject to a $2,500 minimum. |
| Additional training | Currently $1,000 per person per week plus expenses incurred. |
| Local Advertising Marketing and Promotional Expenditures | Minimum of $500 per month |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Island Empanada Franchising, Inc, 2023 filing, page 9
Other fees as filed, from pages 9–10. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Island Empanada does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Island Empanada Franchising, Inc, 2023 filing, page 31
- Estimate Estimated yearly sales per location
- $390K–$680K
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
Growth and closures
Share of franchised locations, 2022 / 2020–2022. Typical means the median: half of brands are above it, half below.
| Measure | Island Empanada | Typical fast food brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | 0% / +600% | 0% / +5.6% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 0% / 100% | 3.7% / 17% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical fast food brand is the median of the 124 brands in fast food franchises with three years of counts.
How Island Empanada compares
Of the 309 fast food franchises on this site, Island Empanada is the 19th cheapest to open and the 190th largest by number of locations.
| Figure | Island Empanada | Typical fast food brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $137K | $353K | $222K |
| Cost to open, high end | $250K | $786K | $477K |
| Franchise fee | $15K | $35K | $40K |
| Royalty | 4% | 6% | 6% |
| Brand fund | 1% | 2% | 2% |
| US locations | 9 | 23 | 21 |
| Shares earnings figures | No | 189 of 309 | 2,147 of 3,352 |
Typical is the median across the 309 brands in fast food franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 5 (+4) | 2 | +4 | 0 |
| 2021 | 7 (+2) | 2 | +3 | −1 |
| 2022 | 7 (0) | 2 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: fast food franchise costs and franchise failure rates.
Source: Island Empanada Franchising, Inc, 2023 filing, page 32
Where Island Empanada locations are
At the end of 2022, Island Empanada had locations in 1 state. The most are in New York.
- New York9
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| New York | 7 | 2 | 9 |
Source: Island Empanada Franchising, Inc, 2023 filing, page 33
Who owns Island Empanada?
Island Empanada franchises are sold by Island Empanada Franchising, Inc.
From Island Empanada Franchising, Inc’s 2023 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | No bankruptcy of the franchisor. Its president and vice president filed for personal Chapter 13 bankruptcy in June 2010 and received a discharge in May 2015. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Island Empanada Franchising, Inc, 2023 filing, litigation on page 8, bankruptcy on page 8
Island Empanada filings
The figures on this page come from Island Empanada Franchising, Inc’s 2023 filing, issued April 29, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | April 29, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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