16 frequently asked questions answered with data from the 2025 Franchise Disclosure Document.
The total initial investment to open a Tio Juan's Margaritas Mexican Restaurant franchise ranges from $489K to $2.9M (2025 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for Tio Juan's Margaritas Mexican Restaurant is $40K (2025 FDD). This one-time fee is paid to the franchisor when signing the franchise agreement and covers the right to use the brand, systems, and initial training.
View full investment analysisData sourced from the Tio Juan's Margaritas Mexican Restaurant 2025 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
No, Tio Juan's Margaritas Mexican Restaurant does not require franchisees to have dedicated real estate (2025 FDD). This can significantly reduce startup costs and ongoing overhead.
View full investment analysisTio Juan's Margaritas Mexican Restaurant charges a royalty fee of 5.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.
View full fees analysisThe total ongoing fee rate for a Tio Juan's Margaritas Mexican Restaurant franchise is approximately 7.0% of gross sales (2025 FDD). This includes the royalty fee, a 2.0% marketing/advertising fund contribution, and other recurring charges.
View full fees analysisTio Juan's Margaritas Mexican Restaurant has been involved in 0 litigation cases over the past 3 years (2025 FDD). There are no class action lawsuits pending.
View full litigation analysisNo, the Tio Juan's Margaritas Mexican Restaurant franchisor has no bankruptcy filings in their disclosure history (2025 FDD).
View full litigation analysisTio Juan's Margaritas Mexican Restaurant offers non-exclusive territory rights to its franchisees (2025 FDD). The franchise agreement does not include encroachment protection. Online sales are managed by the franchisor, not individual franchisees.
View full territory analysisTio Juan's Margaritas Mexican Restaurant currently operates 23 locations (2025 FDD) (6 franchised, 17 company-owned). The system contracted by 8.0% over the past year. The 3-year compound annual growth rate is -2.7%.
View full growth analysisThe 1-year franchisee turnover rate for Tio Juan's Margaritas Mexican Restaurant is 8.7% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.
View full growth analysisAccording to the Tio Juan's Margaritas Mexican Restaurant FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $2.1M (average: $2.3M).
View full financials analysisThe initial franchise agreement term for Tio Juan's Margaritas Mexican Restaurant is 10 years (2025 FDD). Franchisees can renew 2 times for 5-year periods. The total potential term is 20 years.
View full contract analysisTio Juan's Margaritas Mexican Restaurant's post-termination non-compete clause restricts former franchisees from operating a competing business for 2 years within 10 miles of the former location (2025 FDD).
View full legal analysisNo, Tio Juan's Margaritas Mexican Restaurant's franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation. The agreement includes a jury trial waiver.
View full legal analysisTio Juan's Margaritas Mexican Restaurant provides 420 hours of initial training over approximately 11 weeks (2025 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a as-needed basis.
View full support analysisYes, Tio Juan's Margaritas Mexican Restaurant provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.
View full support analysis