Baja Fresh Franchise Cost and Profit

Baja Fresh requires a total initial investment of $429K to $1.0M (midpoint approximately $720K), with an initial franchise fee of $30K. The ongoing fee burden is 5.0% (5% royalty plus 3% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.

According to Item 19 of the 2025 FDD, the median revenue for Baja Fresh locations is $873K. The implied franchisee EBITDA is approximately $70K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 9.7% with a payback period of approximately 10.4 years.

Baja Fresh operates approximately 77 franchised units. However, the brand has been contracting with a 11.1% net unit decline, which may signal franchisee dissatisfaction, territory saturation, or competitive pressure. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 9.4%, indicating strong franchisee financial outcomes.

Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.