Tio Juan's Margaritas Mexican Restaurant

Diving into the 2024 FDD, expect a hefty initial investment of $488,800 to $2,932,600, covering buildouts for this dine-in and carryout concept headquartered in Dover, NH. Franchisees pony up a $40,000 fee, then 5% royalties plus 2% marketing (1.5% local, 0.5% national fund). Item 19 shines brightly here: average gross revenue hits $2,467,588, with medians even stronger at $2,660,126 across the slim 6 franchised locations (versus 19 corporate). That's blockbuster top-line for casual dining, potentially yielding solid EBITDA after costs, but factor in the -14% contraction from 2022-2023, just 1 projected new unit, and 2 transfers—signs of a maturing, not exploding, brand since franchising in 2009.

SBA stats add friction: 4 loans averaging $1,647,500, but a stark 25% default rate screams execution risks in this high-investment play. For buyer eyes, these figures suggest juicy upside if you nail location and ops in underserved markets craving Mexican flair, yet the tiny franchise footprint amplifies reliance on corp support. Scrutinize FDD Items 19-20 for bottom-line proofs, audit recent transfer motives, and probe why growth stalled—could this be a hidden gem for operators craving $2M+ sales, or a margarita mirage?