BAJA FRESH

Item 7 lays out the initial investment from $428,560 to $1,034,290, covering traditional 1,800-3,000 sq ft restaurants or smaller non-traditional units in airports and stadiums. That $30,000 franchise fee gets you the brand, training, and ops manual for standardized fresh prep and marketing. Ongoing hits include 5% royalties, 3% ad fund (up to 4%), plus $55/month POS and up to $75/month data fees—eating into margins on sales of tacos, burritos, and drinks. No Item 19 means no official revenue or profit figures, so you're piecing together viability from elsewhere; with just 67 franchise locations and 6 corporate, it's a small system compared to fast-food giants.

System health shows modest momentum: 5 projected new units, only 1 non-renewal and 1 transfer last year, suggesting stability but no explosive growth. SBA data flags 38 loans averaging $610,145, but a 15.8% default rate warns of financing risks—higher than many peers, possibly tied to post-pandemic pressures or ops challenges. Litigation centers on contract breaches, fee disputes, and terminations, per FDD disclosures, hinting at franchisee tensions. For buyers eyeing quick-service Mexican, Baja Fresh offers a niche with lower density than Chipotle, but the no-earnings black box and SBA defaults scream 'validate hard' before committing seven figures.