ON THE BORDER Franchise FDD, Profits & Costs (2025)
On The Border Mexican Grill & Cantina is a popular Tex-Mex franchise that first opened its doors in Dallas, Texas, in October 1982. The concept was created by three friends who shared a passion for bold, border-inspired flavors, and it quickly gained recognition for its energetic vibe and distinctive menu.
Today, the brand operates out of its headquarters in Irving, Texas.Franchising opportunities were introduced in 1996, allowing business owners to share the On The Border dining experience with communities nationwide.
The restaurant’s menu highlights Tex-Mex classics such as mesquite-grilled fajitas, freshly pressed tortillas, and made-to-order guacamole. Signature touches, like tableside guacamole preparation and hearty portion sizes, set the franchise apart in the casual dining industry.
Initial Investment
How much does it cost to start a ON THE BORDER MEXICAN GRILL & CANTINA franchise? It costs on average between $2,426,000 – $5,058,000 to start a ON THE BORDER MEXICAN GRILL & CANTINA franchised restaurant.
This covers expenses such as construction, restaurant equipment, opening inventory, and initial operating costs. The total amount can vary significantly depending on several factors, including the size and style of the restaurant, the market location, and whether the franchisee opts to lease or purchase the property. ON THE BORDER MEXICAN GRILL & CANTINA offers 3 types of franchises:
| Type of OTB Restaurant | Initial Investment |
|---|---|
| Full Service Conventional Location | $2,932,800 to $5,058,000 |
| Conversion of Existing Restaurant | $1,425,500 to $3,398,000 |
| Retail In-Line Location | $2,425,500 to $4,178,000 |
We are summarizing below the main costs associated with opening a Full Service Conventional Location. For more information on costs required to start a ON THE BORDER MEXICAN GRILL & CANTINA franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Franchise Fee | $30,000 |
| Real Estate | Variable and TBD |
| Legal & Closing Costs | $10,000 – $30,000 |
| Environmental Reports | $10,000 – $50,000 |
| Utilities | $10,000 – $50,000 |
| Professional Fees | $75,000 – $130,000 |
| Total Misc. Development | $105,000 – $260,000 |
| Site Development | $250,000 – $500,000 |
| Building Construction | $1,500,000 – $2,500,000 |
| Equipment, Fixtures & Furniture | $500,000 – $820,000 |
| Computer & Point of Sale System | $50,000 – $85,000 |
| Signage | $50,000 – $100,000 |
| Phone System | $1,000 – $5,000 |
| Total Site Development, Building and F.F. & E. | $2,351,000 – $4,010,000 |
| Initial Training Expenses | $50,000 – $60,000 |
| Opening Personnel | $100,000 – $150,000 |
| Initial Inventory | $30,000 – $45,000 |
| Opening Hourly Uniforms | $1,500 – $3,000 |
| Opening Training Material | $3,000 – $5,000 |
| Initial Smallwares – Bar, Kitchen & Dining Room | $45,000 – $60,000 |
| Grand Opening Advertising | $10,000 – $15,000 |
| Miscellaneous Opening Costs | $10,000 – $20,000 |
| Liquor License | Varies |
| Total Opening Costs | $249,500 – $358,000 |
| Total Estimated Investment Without Land or Operating Funds | $2,732,800 – $4,658,000 |
| Additional Operating Funds – First 3 Months | $200,000 – $400,000 |
| TOTAL (Without Land) | $2,932,800 – $5,058,000 |
Average Revenue (AUV)
How much revenue can you make with a ON THE BORDER MEXICAN GRILL & CANTINA franchise? A ON THE BORDER MEXICAN GRILL & CANTINA franchised restaurant makes on average $2,307,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
Download the Franchise Disclosure Document
Frequently Asked Questions
How many ON THE BORDER MEXICAN GRILL & CANTINA locations are there?
As of the latest available data, On The Border Mexican Grill & Cantina operates a total of 134 locations. Of these, 109 are company-owned restaurants spread across 18 U.S. states, while 25 are franchise-operated units located both in the United States and in South Korea.
What is the total investment required to open a ON THE BORDER MEXICAN GRILL & CANTINA franchise?
The total investment required to open a ON THE BORDER MEXICAN GRILL & CANTINA franchise ranges from $2,426,000 to $5,058,000.
What are the ongoing fees for a ON THE BORDER MEXICAN GRILL & CANTINA franchise?
An On The Border franchise involves an ongoing royalty payment of 4% of gross sales, along with a 2% marketing fee of gross sales to contribute to the system-wide advertising fund.
What are the financial requirements to become a ON THE BORDER MEXICAN GRILL & CANTINA franchisee?
To qualify as an On The Border franchisee, candidates must have at least $1 million in liquid assets available per restaurant, along with a minimum net worth of $3 million.
How much can a ON THE BORDER MEXICAN GRILL & CANTINA franchise owner expect to earn?
The average gross sales for a ON THE BORDER MEXICAN GRILL & CANTINA franchise are approximately $2.31 million per location. Assuming a 15% operating profit margin, $2.31 million yearly revenue can result in $347,000 EBITDA annually.
Who owns ON THE BORDER MEXICAN GRILL & CANTINA?
On the Border Mexican Grill & Cantina franchise is owned by Pappas Restaurants, a Houston-based family-owned hospitality group.
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.
