On The Border Mexican Grill & Cantina^®

Food & Beverage • Year: 2024

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What Is On The Border Mexican Grill & Cantina?

On The Border Mexican Grill & Cantina is a full-service, casual dining franchise focused on Mexican and Tex‑Mex menu options. The concept centers on table-service dine-in restaurants, and franchisees may also offer catering, delivery, and other off‑premises services. Significant revenue streams include the sale of alcoholic beverages and off‑premises catering and delivery, and restaurants typically operate as free‑standing or in-line locations in metropolitan areas and surrounding suburbs near office buildings, shopping malls, shopping centers, and community hubs.

On The Border Mexican Grill & Cantina Franchise: Pros and Cons

The franchise's standout strength is its unusually strong support and training-100 support score and 320 hours of initial training-plus a spotless legal record (zero lawsuits or penalties), but it carries a significant risk with 109 company-owned units, which can limit franchisable territories and create direct corporate competition.

Pros

Training & support score: 100 - a score well above typical (top quarter), indicating the franchisor provides unusually strong support and systems to help you get operational quickly.

Initial training depth: 320 hours - well above typical for Food & Beverage (top quarter), showing the franchisor commits substantial, structured training to prepare new operators.

Clean legal and enforcement record: zero disclosed lawsuits, zero franchisee-initiated judgments or settlements, zero government penalties, and zero franchisor-initiated enforcement - all well below typical for Food & Beverage (bottom 5%), signaling low litigation and regulatory friction for operators.

Cons

Company-owned footprint: 109 corporate units - unusually high for Food & Beverage (top 5%) - which often means fewer franchisable territories, potential direct competition from corporate locations, and questions about the franchisor’s reliance on the franchise model rather than franchisee-driven growth.

Lawsuits & Legal Risk

100

Excellent

On The Border Mexican Grill & Cantina reported no material legal proceedings,

Territory Protection

43/100

NORMAL

On The Border Mexican Grill & Cantina grants a protected area-the lesser of a 2.5‑mile radius or a smaller franchisor-set radius based on market density-without exclusivity. It excludes Non-traditional Locations, is contingent on meeting performance quotas, and the franchisor may develop additional units and sell via e-commerce and alternative channels.

Training & Support

100

Excellent

The brand provides a comprehensive 320-hour training curriculum designed to prepare six initial trainees included in the initial fee for managerial and operational launch roles. The program includes on-site launch support focused on operational readiness; on-site assistance carries an additional cost and franchisees are responsible for travel and living expenses.

Franchisee Stability

51/100

NORMAL

On The Border Mexican Grill & Cantina receives a Normal Stability Score. Three-year turnover of 7.46% sits above the typical Food & Beverage franchise (around 5.4%), placing it modestly above industry peers overall in this 258-company set. Across the three reported years, out of 5 total exits, ceased operations dominated with 5, alongside no terminations, no non-renewals, and no franchisor buybacks.

The dominance of ceased operations suggests location-level economics: operators chose to close underperforming units rather than franchisor-initiated enforcement, so the root causes may lie in site selection, local demand, or operator execution. This is built on a compact track record (roughly 67 franchisees averaged across three years); continued retention as the system grows would solidify the picture. For prospective franchisees, retention is in line with industry peers at present.

How Much Do On The Border Mexican Grill & Cantina Franchise Owners Make?

On The Border Mexican Grill & Cantina franchise locations reported average gross sales of $2,536,791 and median gross sales of $2,307,242 in 2024, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:

$2,536,791

Median Gross Sales:

$2,307,242

High Gross Sales:

$3,761,708

Low Gross Sales:

$1,390,361

Sample Size:

Percent Attaining Average:

42.9%

Audit Status:

Unaudited

Franchise vs Corporate Performance: The 2023 franchised reporters had a higher average gross sales (2,536,791) than OTB-owned locations (2,322,207) for the same year, but the franchised figure is based on only seven reporting restaurants compared with 109 company-owned outlets.

Performance Variability Analysis: Franchised reporting in 2023 shows substantial spread (low 1,390,361 to high 3,761,708) and only about 42.86% of the small sample met or exceeded the mean, indicating notable variability within the limited sample.

Data Scope and Limitations: Franchisee data are limited to gross sales (no cost or profit details) and were not audited, and non-traditional franchise totals are reported separately, which limits comparability and the strength of conclusions drawn from the small franchise sample.

Frequently Asked Questions

Is On The Border Mexican Grill & Cantina a good franchise to own?

Whether On The Border Mexican Grill & Cantina is a good franchise depends on your goals, experience, and local market. Key factors from the 2024 FDD: On The Border Mexican Grill & Cantina operates 134 locations, received a legal risk score of 100/100, a training and support score of 100/100. Financial performance data is disclosed in Item 19. Prospective franchisees should review the full Franchise Disclosure Document and consult with a franchise attorney before making any investment decision.

How long does it take to break even with an On The Border Mexican Grill & Cantina franchise?

Break-even timelines for On The Border Mexican Grill & Cantina franchises are not disclosed in the 2024 Franchise Disclosure Document. Break-even periods vary significantly based on initial investment level, local market conditions, operating costs, and revenue ramp-up speed. Prospective franchisees should build a pro forma financial model using Item 7 cost estimates and, where available, Item 19 financial performance data from the FDD.

Is On The Border Mexican Grill & Cantina a franchise or a corporate-owned business?

As of the 2024 FDD, On The Border Mexican Grill & Cantina operates 25 franchised locations and 109 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.

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