Rusty Taco

Item 7 lays out the financial entry: $30,000 franchise fee plus $529,400-$1,129,950 total investment, covering buildout, equipment, and initial inventory for these casual eateries blending Mexican-Texas flavors with beer. Ongoing fees bite at 5% royalty, 2% brand fund, plus $250-$1,000 monthly tech surcharge and up to $1,000 for learning management—potentially eroding thin fast-casual margins. Item 19 shines brightly here, disclosing average gross revenue of $939,635 and median $923,876 across franchised units, suggesting solid top-line potential if costs stay disciplined; a hypothetical 20% profit margin (after fees) could yield ~$188K EBITDA, but that's unverified without expenses.

System health metrics in Items 20/21 paint a cautionary picture: franchise locations plunged from 31 in 2024 to 25 in 2025 (-19% growth), with 1 corporate outlet and meager 4 projected new units signaling stalled momentum in a competitive field. Only 1 SBA loan on record at $949,000 average underscores limited lender buy-in. For investors, high revenues tempt, but contraction and fee creep demand scrutiny—strong sales won't save a shrinking network without aggressive expansion.