Qdoba Mexican Grill

Franchising Since: 1997

Headquarters: San Diego, California

Estimated Number of Units: 760

Franchise Description: The franchisor is Qdoba Restaurant Corporation. The franchisor grants franchises for the operation of quick-service or fast-casual Mexican restaurants under the service mark “Qdoba,” and variations on that mark. Franchises offer the right and duty to operate a Qdoba restaurant business under the terms and conditions of a franchise agreement. Qdoba’s menu features Mexican-themed food items including burritos, tacos, salads, and quesadillas. All restaurants also offer chips and a variety of dips and sauces, including queso, guacamole, and salads, as well as a wide selection of soft drinks. Some restaurants also sell beer, margaritas, wine and other offerings of alcoholic beverages.

Training Overview: The Designated Operator (DO), General Manager and a third person designated by franchisees (such as an assistant manager) must attend the training programs. The DO must attend on-the-job training at a certified training restaurant, and classroom training. Approximately 12 weeks before the scheduled opening of the restaurant, the franchisor will begin training the DO. The DO is also required to attend an additional week of Regional Manager training relating to regional management. The General Manager should complete training about three to four weeks before the opening of the restaurant. A third person should complete training at least one week before the restaurant opens. The franchisor will provide the on-site pre-opening and opening assistance the franchisor deems advisable for the first two restaurants franchisees open, subject to the availability of personnel. The DO, General Manager and/or certain other employees must attend such refresher courses, seminars and other training programs as the franchisor may reasonably require from time to time.

Territory Granted: The Franchise Agreement grants franchisees the right to operate a single Qdoba restaurant at a specific, Accepted Location. Except at certain non-traditional locations, the Franchise Agreement grants franchisees certain territorial rights in a geographic radius referenced in an exhibit to the Franchise Agreement. The protected geographic territory (Protected Territory) will generally be a radius of two miles from the Franchised Restaurant, but may be a different radius that the franchisor agrees to before it signs the Franchise Agreement. During the term of the Franchise Agreement, the franchisor will not, without the franchisee’s consent, establish or franchise another to establish, a new Qdoba restaurant at any location that falls within the Protected Territory, except as provided in the Franchise Agreement. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution of competitive brands that it controls.

Obligations and Restrictions: Except certain non-traditional restaurants, if franchisees have more than one Qdoba franchised restaurant, they must at all times be under the full-time supervision of a Designated Operator (DO) and a General Manager (unless otherwise approved by Qdoba). The DO must have at least three years of multi-unit experience in the operation of a casual-dining, fast-food, family-dining or cafeteria-style restaurant, and must be approved by the franchisor. The person who is responsible for the day-to-day supervision of the restaurant must assume such responsibilities on a full-time basis, and may not engage in any other business or other activity, directly or indirectly, that requires any significant management responsibility, time commitments, or otherwise may conflict with the obligations under the Franchise Agreement. Franchisees must use the restaurant premises solely for the operation of a Qdoba restaurant. Franchisees must sell or offer for sale only such menu items, products or services (including catering services) that the franchisor has expressly approved, and may not offer or sell other products or services at or from the restaurant.

Term of Agreement and Renewal: The length of the initial franchise term is typically 10 years, but term may be shorter if the property cannot be secured for 10 years. If franchisees are not in default, and remodel the restaurant and meet certain other requirements, they can enter into a new agreement for an additional term for an additional fee.

Financial Assistance: The franchisor does not normally offer financing in connection with the establishment or operation of new franchised restaurants. The franchisor does not guarantee a franchisee’s lease or any note or other obligation the franchisee may incur. The franchisor may, upon request, try to help franchisees locate a source of financial assistance. The franchisor will not charge a fee or receive other compensation for this service.

The above information has been compiled from the FDD of Qdoba Mexican Grill. Year of FDD: 2019.