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Barrio Queen Restaurant
Barrio Queen franchises enable operators to run restaurants specializing in authentic Southern Mexican food and beverages prepared using proprietary recipes, offered on a take-out, delivery, or eat-in basis, including branded and licensed products. The business model involves franchising full-service casual dining establishments typically located in free-standing buildings or end caps in retail centers. It targets the general public of all ages seeking Mexican cuisine competitors include other Mexican restaurants and casual dining chains.
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Franchise Costs
5% royalty (plus up to $10/wk surcharge) + 1% ad fund + $200-$325/mo technology support fees
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataBarrio Queen Restaurant Franchise Analysis
Barrio Queen entered franchising with bold promises of authentic Southern Mexican cuisine in casual dining spots, but its youth raises questions about scalability. Franchisees face a high-stakes entry amid ongoing legal skirmishes over alleged misrepresentations and contract breaches. Without Item 19 earnings disclosure, and with SBA loan records hinting at financing realities, does this system's trajectory signal expansion or early turbulence?
Franchising since 2023 under BBQ Holdings, Barrio Queen has just 8 corporate locations and projects only 2 new units, signaling cautious growth in a competitive fast-casual Mexican segment. Item 7 outlines a steep initial investment of $1,346,500 to $3,520,000, including a $50,000 franchise fee, driven by buildouts in free-standing or end-cap sites. Ongoing fees hit 5% royalties plus 1% brand fund and $200-$325 monthly tech support—standard but burdensome atop the high upfront outlay. The absence of Item 19 means no validated revenue or profit figures, forcing reliance on anecdotal reports in a brand with minimal track record.
System health flags abound: only 3 SBA loans averaging $234,333 suggest limited financing uptake and possible lender hesitation for this newcomer. Litigation history bulges with franchisee suits claiming violations of state franchise laws (FIPA, MFA, WFIPA), breaches, and unpaid fees, countered by franchisor actions on terminations and trademarks—classic early-franchise friction that could erode trust. For investors eyeing $1M+ commitments, this combo of slow unit projections, zero earnings transparency, and legal noise points to elevated risk over reward in a saturated market; proven chains offer safer paths unless you're betting on untapped Mexican niche potential.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Barrio Queen Restaurant Compares
Key Insights
- Higher investment than 93% of Fast Casual franchises
- Lower than average SBA loan default rate in Fast Casual
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Barrio Queen Restaurant Current | $1.1M – $3.1M | $40K | 5.0% | 1 |
| Tropical Smoothie Cafe | $276K – $771K | $35K | 6.0% | 1,650 |
| TROPICAL SMOOTHIE CAFÉ | $300K – $721K | $35K | 6.0% | 1,371 |
| FIREHOUSE SUBS RESTAURANTS (UNIT) | $405K – $1.6M | $20K | 6.0% | 1,249 |
| Zaxby's | $1.4M – $3.8M | $35K | 6.0% | 826 |
| Qdoba | $548K – $1.3M | $40K | 5.0% | 652 |
Fast Casual Average 107 franchises | $522K – $1.2M | $39K | 5.6% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 107 Fast Casual franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for Barrio Queen Restaurant franchisees (2024 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
3 SBA loans on record
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Unlock SBA loan historyDue Diligence
Litigation (Item 3)
Primarily termination disputes, breach of contract, fee collection, post-termination trademark use, and misrepresentation or state franchise law violation claims.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Barrio Queen Restaurant franchise ranges from $1,056,000 to $3,075,000. This includes a franchise fee of $40,000. Ongoing royalty fees are 5.0% of gross sales.
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