Margaritas Mexican Restaurant franchise
2024 filing · April 19, 2024Fewer locationsShares sales figures
Margaritas Mexican Restaurant at a glance
A full-service Mexican restaurant and bar serving dine-in and carry-out. At the end of 2023 there were 25 Margaritas Mexican Restaurant locations in the US, 6 franchised and 19 company-owned, so most are run by the company itself.
The business
- Franchisor
- Margaritas Franchising Corp
- The company that sells the franchises
- Typical size
- 4,300–8,500 sq ft
What you pay
- Cost to open
- $489K–$2.93M
- Fee, build-out and opening working capital
- Franchise fee
- $40,000
- Paid once, when you sign
- Royalty
- 5%
- 5% of weekly gross sales
- Brand fund
- 0.5%
- 0.5% of gross sales to the brand fund, within a 2% advertising obligation
- Agreement length
- 10 years
- Territory
- None
- No exclusive territory
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 25
- Franchised and company-owned
- Franchised
- 6
- Company-owned
- 19
- Change in 3 years
- −1
- Franchised locations, 2021–2023
- States
- 6
- Most in New Hampshire, Maine and Massachusetts
From Margaritas Franchising Corp’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Margaritas Mexican Restaurant among all franchises with the same figure.
| Figure | Margaritas Mexican Restaurant | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $1,710,700 | Costs more than 91% of franchises |
| Franchise feePaid once, when you sign | $40,000 | Lower than 46% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 25 | More than 53% of franchises |
How much a Margaritas Mexican Restaurant franchise costs
Opening one Margaritas Mexican Restaurant costs an estimated $488,800 to $2,932,600. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are construction ($155,000 to $1,778,000) and furnishing, fixtures and equipment ($45,000 to $561,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $40,000 | ||
| Construction | $155,000 | $1,778,000 | |
| Travel and Living Expenses while Training | $10,000 | $20,000 | |
| Furnishing, Fixtures and Equipment | $45,000 | $561,000 | |
| Signage | $8,000 | $40,000 | |
| Initial Inventory and Supplies | $21,000 | $43,000 | |
| Miscellaneous Opening Costs | $55,000 | $260,000 | |
| Insurance | $4,300 | $40,000 | |
| Gift Card Program | $500 | $600 | |
| Additional Funds -- 3 months after opening | $150,000 | ||
| Total | $488,800 | $2,932,600 | |
Source: Margaritas Franchising Corp, 2024 filing, page 18
Margaritas Mexican Restaurant franchise fee
The franchise fee is $40,000. You pay it when you sign the franchise agreement.
Source: Margaritas Franchising Corp, 2024 filing, page 13
Royalty and ongoing fees
| Royalty | 5% of weekly gross sales. |
|---|---|
| Brand or marketing fund | 0.5% of gross sales to the brand fund, within a 2% advertising obligation. |
| Transfer Fee – Franchise Agreement | 25% of our then-current Initial Franchise Fee |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Margaritas Franchising Corp, 2024 filing, page 14
Other fees as filed, from page 15. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Margaritas Mexican Restaurant publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Margaritas Franchising Corp, 2024 filing, page 50
- Estimate Estimated yearly sales per location
- $1.5M–$2.7M
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, 2023 / 2021–2023. Typical means the median: half of brands are above it, half below.
| Measure | Margaritas Mexican Restaurant | Typical Mexican food brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | −14% / −14% | −2% / +2.3% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 14% / 14% | 3.3% / 11% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical Mexican food brand is the median of the 16 brands in mexican food franchises with three years of counts.
How Margaritas Mexican Restaurant compares
Of the 55 Mexican food franchises on this site, Margaritas Mexican Restaurant is the 31st cheapest to open and the 22nd largest by number of locations.
| Figure | Margaritas Mexican Restaurant | Typical Mexican food brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $489K | $457K | $222K |
| Cost to open, high end | $2.93M | $946K | $477K |
| Franchise fee | $40K | $35K | $40K |
| Royalty | 5% | 5% | 6% |
| Brand fund | 0.5% | 2% | 2% |
| US locations | 25 | 15 | 21 |
| Shares earnings figures | Yes | 38 of 55 | 2,147 of 3,352 |
Typical is the median across the 55 brands in mexican food franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 7 (0) | 18 | 0 | 0 |
| 2022 | 7 (0) | 18 | 0 | 0 |
| 2023 | 6 (−1) | 19 | 0 | −1 |
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: franchise failure rates.
Source: Margaritas Franchising Corp, 2024 filing, page 53
Where Margaritas Mexican Restaurant locations are
At the end of 2023, Margaritas Mexican Restaurant had locations in 6 states. The most are in New Hampshire, Maine and Massachusetts.
- New Hampshire8
- Maine6
- Massachusetts5
- Connecticut2
- New Jersey2
- Pennsylvania2
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| New Hampshire | 0 | 8 | 8 |
| Maine | 2 | 4 | 6 |
| Massachusetts | 0 | 5 | 5 |
| Connecticut | 0 | 2 | 2 |
| New Jersey | 2 | 0 | 2 |
| Pennsylvania | 2 | 0 | 2 |
Source: Margaritas Franchising Corp, 2024 filing, page 54
Who owns Margaritas Mexican Restaurant?
Margaritas Mexican Restaurant franchises are sold by Margaritas Franchising Corp.
From Margaritas Franchising Corp’s 2024 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on page 12. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
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: Margaritas Franchising Corp, 2024 filing, litigation on page 12, bankruptcy on page 13
Margaritas Mexican Restaurant filings
The figures on this page come from Margaritas Franchising Corp’s 2024 filing, issued April 19, 2024, on record with the Minnesota Department of Commerce.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | April 19, 2024 | Minnesota | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other Mexican food franchises
All Mexican food franchises
Margaritas Mexican Restaurant is also on these lists: restaurant franchises, food franchises.