Tio Juan’s Margaritas Franchise FDD, Profits & Costs (2025)
Tio Juan’s Margaritas Mexican Restaurant was established in 1985 by John Pelletier in Concord, New Hampshire, with a mission to introduce the rich flavors and traditions of Mexico to American diners
The company is based in Dover, New Hampshire, and began franchising in 2009. Since launching its franchise program, Margaritas has grown to more than two dozen locations across the Northeast, including states such as Massachusetts, Maine, New Jersey, Connecticut, New Hampshire, and Pennsylvania.
Margaritas delivers a relaxed, family-friendly dining atmosphere where guests can enjoy freshly prepared Mexican dishes. The menu highlights crowd favorites like tacos, fajitas, and its well-known margaritas, all crafted to order for both dine-in and takeout service.
Each restaurant is designed to transport guests to Mexico through hand-crafted artwork and authentic furnishings imported directly from artisans.
Initial Investment
How much does it cost to start a Tio Juan’s Margaritas Mexican Restaurant franchise? It costs on average between $1,376,000 – $2,879,000 to start a Tio Juan’s Margaritas Mexican Restaurant franchised restaurant.
This covers construction and build-out of the restaurant, purchase of kitchen equipment and furnishings, initial food and beverage inventory, as well as early operating expenses.
The total amount varies based on factors such as the size and design of the restaurant, the specific market location, and whether the franchisee decides to lease or buy the property.
| Type of Expenditure | Amount |
|---|---|
| Per Location Development Fee | $10,000 |
| Initial Franchise Fee | $40,000 |
| Real Estate | Variable |
| Construction | $400,000 – $1,575,000 |
| Travel and Living Expenses while Training | $10,000 – $20,000 |
| Furnishing, Fixtures and Equipment | $425,000 – $625,000 |
| Signage | $20,000 – $40,000 |
| Initial Inventory and Supplies | $35,000 – $43,000 |
| Miscellaneous Opening Costs | $240,000 – $310,000 |
| Insurance | $20,000 – $40,000 |
| Permits and Liquor Licenses | Variable |
| Gift Card Program | $500 – $600 |
| Additional Funds – 3 months after opening | $175,000 |
| Total | $1,375,500 – $2,878,600 |
Average Revenue (AUV)
How much revenue can you make with a Tio Juan’s Margaritas Mexican Restaurant franchise? A Tio Juan’s Margaritas Mexican Restaurant franchised restaurant makes on average $2,150,000 in revenue (AUV) per year.
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Frequently Asked Questions
How many Tio Juan’s Margaritas Mexican Restaurant locations are there?
As of the most recent data, Tio Juan’s Margaritas Mexican Restaurant operates a total of 26 locations. Out of these, 18 are company-owned units, while the remaining locations are franchise-owned.
What is the total investment required to open a Tio Juan’s Margaritas Mexican Restaurant franchise?
The total investment required to open a Tio Juan’s Margaritas Mexican Restaurant franchise ranges from $1,376,000 to $2,879,000.
What are the ongoing fees for a Tio Juan’s Margaritas Mexican Restaurant franchise?
Franchisees of Tio Juan’s Margaritas Mexican Restaurant are required to pay ongoing fees that include a royalty fee of 5% of gross sales and a marketing and advertising fee of 2% of gross sales.
What are the financial requirements to become a Tio Juan’s Margaritas Mexican Restaurant franchisee?
To qualify as a Tio Juan’s Margaritas Mexican Restaurant franchisee, candidates are expected to have a minimum net worth of $3,000,000 along with at least $1,000,000 in liquid capital. These financial thresholds ensure that prospective franchisees have the necessary resources to cover the substantial startup costs and sustain operations during the initial phase of the business.
How much can a Tio Juan’s Margaritas Mexican Restaurant franchise owner expect to earn?
The average gross sales for a Tio Juan’s Margaritas Mexican Restaurant franchise are approximately $2.15 million per location. Assuming a 15% operating profit margin, $2.15 million yearly revenue can result in $323,000 EBITDA annually.
Who owns Tio Juan’s Margaritas Mexican Restaurant?
The franchise is owned by Margaritas Management Group, which oversees the development and expansion of Tio Juan’s Margaritas Mexican Restaurant brand across its corporate and franchise locations.
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