Bubbakoo’s Burritos Franchise Costs $233K – $700K (+ 2024 Profits)

Bubbakoo’s Burritos, a fast-casual eatery blending Mexican and American culinary styles, was established in 2008 by Paul Altero and Bill Hart. The brand launched its first location in Point Pleasant, New Jersey, quickly becoming known for its innovative burrito offerings in a vibrant, skater-surf-themed environment.

Recognizing the potential for expansion and responding to customer demand, Bubbakoo’s Burritos began offering franchise opportunities in 2015, with its corporate office situated in Wall, New Jersey. As of the latest updates, the franchise has grown significantly, boasting locations across multiple states.

Bubbakoo’s Burritos differentiates itself by offering a diverse menu that includes burritos, tacos, quesadillas, and other Mexican-inspired dishes, all customizable with a variety of fresh ingredients. The brand has earned accolades for its growth and innovation, reflected in its rise in rankings on Entrepreneur’s Franchise 500® list and inclusion in Franchise Times’ Smartest Growing Franchises.

Type of Expenditure	Amount (New Location)
Initial Franchise Fee	$35,000
Training Expenses	$5,000 – $10,000
Utility and Security Deposits	$1,000 – $10,000
Insurance Premiums	$1,000 – $8,000
Business Permits and Licenses	$3,000 – $20,000
Rent (3 months)	$12,000 – $25,000
Design and Architectural Fees	$5,000 – $15,000
Leasehold Improvements	$150,000 – $360,000
Interior Brand Design Package	$5,000 – $10,000
Signage	$5,000 – $35,000
Furniture and Fixtures	$5,000 – $10,000
Equipment	$75,000 – $103,000
Initial Inventory	$6,000 – $12,000
Grand Opening Advertising	$5,000
POS/Back Office System	$2,000 – $5,000
Professional Fees	$1,000 – $7,000
Additional Funds (3 Months)	$15,000 – $30,000
Total	$331,000 – $700,000

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.

Initial Franchise Fee

The initial franchise fee is $35,000, which is fully earned and non-refundable upon payment.

Royalty Fee

The ongoing royalty fee is 6% of the Gross Sales generated by the Franchised Business each week.

Marketing/Advertising Fee

The System-wide marketing fund contribution is up to 3% of Gross Sales weekly. Additionally, a local advertising requirement mandates minimum expenditures amounting to 1% of Gross Sales each month.

Lease or Rent Fee

Estimated lease or rent costs vary depending on the specific terms negotiated with landlords and can range from $0 to $15,000 as arranged.

Renewal Fees

The renewal fee is $5,000, payable upon the renewal of the franchise agreement.

Management Fees

The management fee is 10% of the Gross Sales of the Franchised Business over the time period that the franchisor operates the business on the franchisee’s behalf, in addition to costs/expenses incurred, payable when incurred.

How to open a Bubbakoo’s Burritos franchise

Opening a Bubbakoo’s Burritos franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Bubbakoo’s Burritos franchise.

1: Conduct Preliminary Research

• Understand the Brand: Get to know Bubbakoo’s Burritos’ business concept, mission, and offerings.
• Market Analysis: Evaluate the demand and competition in your target location.

2: Meet Qualification Criteria

• Financial Requirements: Confirm you meet the financial requirements such as minimum liquid capital and net worth.
• Experience: Prior experience in restaurant management or ownership is advantageous.

3: Submit an Application

• Initial Contact: Reach out to Bubbakoo’s Burritos through their franchising website.
• Application Form: Complete the application form providing your financial and business background.

4: Attend Discovery Day

• Introduction: Visit the corporate headquarters and meet key franchise staff.
• Operations Overview: Gain insight into the operational aspects of the franchise.

5: Review Franchise Disclosure Document (FDD)

• Legal and Financial Terms: Review the FDD carefully for all legal and financial obligations.
• Consult Professionals: Seek advice from a lawyer and an accountant specialized in franchises.

6: Secure Financing

• Investment Costs: Calculate the total investment required including all associated costs.
• Funding Sources: Explore funding options such as loans or financing through the franchisor.

7: Sign Franchise Agreement

• Agreement Finalization: Sign the franchise agreement to become an official franchisee.
• Legal Commitment: Understand the legal obligations and policies outlined in the agreement.

8: Receive Training and Support

• Training Programs: Participate in training provided by Bubbakoo’s Burritos.
• Ongoing Support: Utilize ongoing support for marketing, operations, and further training.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.