Qdoba

Delve into Item 7: launching a Qdoba demands $548,100 to $1,294,000 upfront, including a $40,000 franchise fee, targeting strip centers or freestanding spots in urban-suburban mix. Ongoing bites come via 5% royalties, 4.5% brand/ad fund, plus $800-$1,900 monthly tech fees for IT and support. Item 19 shines with average gross sales of $1,661,277 and median $1,596,761 from disclosed units, but that 0% EBITDA margin underscores razor-thin operations—estimated profits span -$214,733 to $1,054,733, screaming location lottery. System stats bolster confidence: 652 franchised versus 175 corporate stores, just 1 non-renewal, 11 transfers, and 77 projected new units signal steady expansion under Butterfly Equity's ownership.

SBA records add gravy: 38 loans averaging $598,779 with a scant 2.6% default rate, far below many peers, easing financing hurdles since franchising began in 1997. Two settled litigations—franchisee suits over terminations and breaches—resolve without ongoing drag, though they flag execution risks. Strong revenues position Qdoba well against rivals, but breakeven EBITDA and profit volatility demand scrutinizing top performers' sites; this isn't passive income, but for hands-on operators chasing fast-casual growth, the model's customization edge and private equity push could spice up returns.