Panchero’s Franchise FDD, Profits & Costs (2025)

Established in 1992, Panchero’s Mexican Grill has earned recognition in the Mexican fast-casual dining space for its commitment to fresh, no-frills Mexican cuisine. Based in Iowa, the brand first made its mark in Iowa City, where the inaugural restaurant became a popular choice, especially among the local college community.

Panchero’s began franchising in 1995, enabling it to share its distinctive dining concept with a broader audience. The brand stands out in the competitive fast-casual Mexican food segment by emphasizing fresh ingredients and delivering simple, high-quality dishes.

A signature element of the Panchero’s experience is its freshly prepared, hand-pressed tortillas, crafted in full view of customers. This focus on freshness and customization resonates with diners looking for an authentic meal. Additionally, Panchero’s dedication to streamlined operations ensures consistent and efficient service across all locations.

Initial Investment

How much does it cost to start a Panchero’s franchise? It costs on average between $681,000 – $1,388,000 to start a Panchero’s franchised restaurant.

This includes expenses for construction, equipment, inventory, and initial operating costs. The total investment varies based on several factors, such as the restaurant’s size, location, and whether the franchisee opts to lease or buy the property.

Type of ExpenditureAmount
Initial Franchise Fee$30,000
Real Estate/Rent and Security Deposit$0 – $30,000
Utility Security Deposits$0 – $5,000
Leasehold Improvements$378,000 – $750,000
Furniture, Fixtures & Equipment$165,000 – $210,000
Initial Merchandise Purchases$2,000 – $5,000
Initial Inventory$8,500 – $15,000
Insurance$3,500 – $17,000
Training$5,000 – $15,000
Initial Marketing Campaign$30,000 – $50,000
Signage$10,000 – $38,000
Point-of-Sale System and Back Office Software$13,500 – $18,000
Office Equipment/Supplies$3,000 – $7,000
Licenses and Permits$1,000 – $7,500
Professional Fees$6,000 – $40,000
Additional Funds (3 months)$25,000 – $150,000
TOTAL$680,500 – $1,387,500

Average Revenue (AUV)

How much revenue can you make with a Panchero’s franchise? A Panchero’s franchised restaurant makes on average $1,315,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

Panchero's FDD item 19 extract

This compares to $1,200,000 yearly revenue for similar mexican franchises. Below are a few Panchero’s competitors as a comparison:

Panchero's franchise competitors

Panchero’s Franchise Disclosure Document

Frequently Asked Questions

How many Panchero’s locations are there?

As of the latest data, Panchero’s Mexican Grill operates 74 locations across 13 states in the United States. Of these, 48 are franchise-owned, while the remaining 26 are company-owned.

What is the total investment required to open a Panchero’s franchise?

The total investment required to open a Panchero’s franchise ranges from $681,000 to $1,388,000.

What are the ongoing fees for a Panchero’s franchise?

Panchero’s Mexican Grill requires franchisees to pay an ongoing royalty fee of 5% of gross revenues. Additionally, franchisees contribute up to 3% of gross revenues to the Advertising Fund, with the current rate set at 2%. Franchisees are also obligated to allocate at least 3% of their gross revenues towards local advertising efforts.

What are the financial requirements to become a Panchero’s franchisee?

To qualify as a Panchero’s franchisee, you should have a minimum net worth of $1 million and at least $500,000 in liquid capital. Additionally, the franchise fee is $30,000.

How much can a Panchero’s franchise owner expect to earn?

The average gross sales for a Panchero’s franchise are approximately $1.32 million per location. Assuming a 15% operating profit margin, $1.32 million yearly revenue can result in $198,000 EBITDA annually.

Who owns Panchero’s?

Panchero’s Mexican Grill is owned by Rodney Anderson, who founded the franchise in 1992. He continues to lead the company as its president, with headquarters based in Coralville, Iowa.

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.

0