Qdoba^®

Food & Beverage • Year: 2025

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What Is Qdoba?

Qdoba is a Mexican-themed quick-service and fast-casual franchise specializing in customizable burritos, bowls, tacos, salads, quesadillas, and nachos. Restaurants fulfill orders via in-restaurant order lines (with seating), drive-thrus, pickup windows, curbside pickup, digital channels (website and app), and third-party or company delivery. Significant revenue streams include a catering program (notably the “Hot Bar”) and the sale of alcoholic beverages at some locations. Typical sites are approximately 1,500 to 3,000 square feet, seat about 15–80 patrons, and are most often located in strip shopping centers or freestanding buildings, with some non-traditional locations also used.

Qdoba Franchise: Pros and Cons

The franchisor offers exceptional operator preparation, with a Training and Support score of 100 and 315 total training hours, but the Item 7 maximum reserve requirement of $150,000, well above typical, creates a significant pre-opening cash burden to cover several months of operating costs.

Pros

Training and Support score of 100 plus 315 total training hours - both well above typical - shows the franchisor invests heavily in preparing new operators before opening.

Franchise Stability Score of 79/100, above typical for this industry, indicates stronger-than-average franchisee retention.

Zero government penalties, zero franchisor-initiated enforcement actions, and zero franchisee-initiated judgments - all well below typical - point to a cleaner regulatory and enforcement record than most systems.

Cons

Nine reacquired outlets (well above typical), eight non-renewals and two franchisee-initiated settlements - all above typical - indicate operator turnover and recurring disputes that increase the operational friction in the system.

Item 7 maximum reserve requirement of $150,000, well above typical, implies you may need significantly more cash on hand pre-opening to cover several months of operating costs.

175 company-owned units, well above typical, means a large corporate fleet that can reduce the number of experienced franchise peers and may reflect less emphasis on growing the franchise channel.

Lawsuits & Legal Risk

80/100

NORMAL

Qdoba faced franchisee disputes over alleged wrongful terminations and operational maintenance, resolved via settlement without admission of liability-including a cash payment, royalty reduction and term extension to Q of Hasbrouck Heights and reinstatement of one Fiesta Ventures agreement. Advice: review termination/cure clauses, post-termination obligations, maintenance standards and Item 12 territorial protections; inspect settlement terms.

Territory Protection

43/100

NORMAL

Qdoba grants a protected (non‑exclusive) territory-typically a two‑mile radius or a defined Development Area-providing site‑specific rights while permitting pre‑existing units and adjustments for market density. Territory rights are contingent on development and performance quotas; the franchisor may develop nearby units and sell via alternative distribution channels.

Training & Support

100

Excellent

Qdoba provides a comprehensive 315-hour training curriculum designed to prepare four staff members for launch, covering operational, managerial, and service areas. The program includes on-site launch assistance for operational readiness; franchisees are responsible for travel and lodging, and on-site support is provided for an additional fee beyond the initial franchise fee.

Franchisee Stability

79/100

Good

Qdoba earns a Good Stability Score. Three-year turnover of 2.70% is well below the typical Food & Beverage franchise (around 6%), and it sits much closer to the low-churn end of the sector than to the typical level by a comfortable margin. Out of 44 total exits across the three reported years, ceased operations dominated with 31, alongside 8 franchisor buybacks, 5 non-renewals, and no terminations; this occurred with about 613 franchised outlets in the most recent year.

The dominance of ceased operations suggests location-level economics drove most closures and that those closures tended to cluster in particular local markets. Beyond its industry-relative position, a 2.70% three-year turnover rate is genuinely exceptional in absolute terms across all of franchising. For prospective franchisees, examine unit-level economics in the geographies where closures have concentrated.

How Much Does It Cost to Open a Qdoba Franchise?

Opening a Qdoba franchise requires a total initial investment of $548,100 to $1,294,000, according to the 2025 Franchise Disclosure Document. This range covers the franchise fee, real estate, equipment, training, and initial working capital needed to launch and operate through the early months.

Minimum Investment

$548,100

Franchise Fee

Real Estate

Equipment & Assets

Reserves

Training

Other

Maximum Investment

$1,294,000

Minimum Investment Breakdown

Franchise Fee$40,000

Real Estate$200,000

Equipment & Assets$190,000

Reserves$25,000

Training$0

Other$93,100

Maximum Investment Breakdown

Franchise Fee$40,000

Real Estate$525,000

Equipment & Assets$375,000

Reserves$150,000

Training$0

Other$204,000

Investment Analysis

This investment analysis is coming soon. Have ideas for other analyses you'd like us to add? Get in touch.

The initial investment amounts shown are estimates only. Actual costs may vary based on location size, business model, and multi-unit ownership arrangements. We recommend reviewing the full Franchise Disclosure Document for complete details.

How Much Do Qdoba Franchise Owners Make?

Qdoba franchise locations reported average gross sales of $1,766,860 and median gross sales of $1,647,607 in 2025, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:

$1,766,860

Median Gross Sales:

$1,647,607

High Gross Sales:

$5,078,990

Low Gross Sales:

$422,629

Sample Size:

390

Percent Attaining Average:

43.1%

Audit Status:

Unaudited

Franchise vs Corporate Performance: Most recent FY (FY2025) same-store results: average net sales per franchised restaurant were $1,766,860 with year-over-year same-store sales growth of 5.0% (same-store sales total $689,075,573 across 390 units). The franchised-restaurant trailing-12-month average net restaurant sales reported in Chart 3 (different sample) is $1,661,277, indicating consistency in mid-to-high single‑millions in annual net sales for franchised outlets.

Performance Variability Analysis: There is substantial dispersion: median net sales for FY2025 were $1,647,607 while high net sales reached $5,078,990 and low net sales were $422,629. Quartile analysis shows wide variation (top quartile average ~$2.57M; bottom quartile average ~$969k). Only ~43% of restaurants attained or exceeded the sample average, indicating meaningful performance skew toward higher-volume units.

Data Scope and Limitations: Data are unaudited and drawn from differing samples depending on the table (e.g., 390 units for same-store growth; 397 units and 464 units in other analyses). The disclosure excludes non-traditional, Canadian, newly opened, refranchised, and long‑closed restaurants; advertising and royalty fee changes are noted. Because of these exclusions and multiple sample frames, results should be interpreted as indicative rather than universally representative.

Frequently Asked Questions

Is Qdoba a good franchise to own?

Whether Qdoba is a good franchise depends on your goals, experience, and local market. Key factors from the 2025 FDD: Qdoba operates 827 locations, received a legal risk score of 80/100, 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.

Is a Qdoba franchise worth the investment?

The value of a Qdoba franchise investment depends on factors such as location, operator experience, and market demand. The initial investment ranges from $548,100 to $1,294,000. Qdoba disclosed average gross sales of $1,766,860 in 2025. The system reported 1 terminated units in 2025. Franchise investments carry inherent risk, and prospective buyers should conduct thorough due diligence before committing capital.

What is the failure rate of Qdoba franchises?

In the 2025 FDD, Qdoba reported 1 terminated franchises and 8 non-renewals out of 827 total locations. Franchise closures can result from many factors including market conditions, operator decisions, lease expirations, and franchisor enforcement actions. The FDD's Item 20 provides the most detailed unit turnover data.

How long does it take to break even with a Qdoba franchise?

Break-even timelines for Qdoba franchises are not disclosed in the 2025 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 Qdoba a franchise or a corporate-owned business?

As of the 2025 FDD, Qdoba operates 652 franchised locations and 175 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.

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