Dos Coyotes Franchise in 2024: Costs, Fee & FDD
Explore why Dos Coyotes might be the right franchise for you. Learn about its unique menu, strong community connections, and what makes it stand out in the fast-casual dining scene. Read more to find out!
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Dos Coyotes is a vibrant, fast-casual restaurant chain that has carved out a niche in the culinary world by blending the bold flavors of Southwestern cuisine with a California twist. Founded in 1991 by Bobby Coyote, this franchise began with a simple vision: to bring the rich, diverse flavors of the Southwest to the mainstream, all while maintaining a commitment to quality and community. The restaurant’s focus on fresh ingredients, vibrant flavors, and a relaxed, friendly atmosphere has made it a beloved staple in the regions where it operates.
At the heart of Dos Coyotes’ menu is a range of Southwestern-inspired dishes that celebrate bold flavors and fresh ingredients. Their burritos, tacos, and salads are packed with flavor and creativity, often featuring grilled meats, roasted chilies, and house-made salsas. The franchise also offers a variety of ancillary products, such as signature sauces and salsas, which have developed a loyal customer base. Dos Coyotes primarily attracts a diverse crowd of food enthusiasts, including families, college students, and professionals looking for a quick, flavorful meal that doesn’t compromise on quality.
As of now, Dos Coyotes has established a solid presence, particularly in California, where it has multiple locations. The franchise has maintained a steady growth trajectory, thanks to its consistent delivery of quality food and its ability to adapt to local tastes. While it hasn’t yet expanded internationally, Dos Coyotes serves a large daily customer base across its locations, ensuring that each restaurant retains the local charm that originally endeared it to its customers.
The franchise offers robust support to its franchisees, providing comprehensive training programs that cover everything from operational procedures to the art of maintaining the brand’s unique ambiance. Franchisees receive ongoing support in marketing, menu development, and operations, ensuring they have the tools needed to succeed. Dos Coyotes’ commitment to quality and community extends to its franchise model, making it an attractive option for potential investors looking to be part of a growing and beloved brand.
Dos Coyotes Franchise Insights
- The brand’s emphasis on fresh, locally-sourced ingredients has made it a standout in the fast-casual dining scene, appealing to health-conscious and flavor-seeking customers alike.
- Dos Coyotes’ commitment to community involvement has built strong local ties, making each location a beloved part of its neighborhood.
- The franchise’s flexibility in menu offerings allows it to cater to a wide range of dietary preferences, from meat lovers to vegetarians, which has broadened its customer base.
- With its distinctive Southwestern-Californian fusion, Dos Coyotes offers a unique culinary experience that sets it apart from typical fast-casual options, creating a loyal and diverse following.
Dos Coyotes Franchise Key indicators
Growth YOY (%)
0%
vs industry 1%
Total U.S. Franchised Units
2
Total Investment
$1.47M-$1.79M
How much does it cost to open a Dos Coyotes franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Dos Coyotes franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Dos Coyotes franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Dos Coyotes below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Construction Costs | $670,000 | $750,000 |
| Furniture, Fixtures, Décor, Kitchen Equipment, Other Equipment, and Signs | $495,000 | $601,500 |
| Initial Inventory | $55,000 | $71,500 |
| Initial Franchise Fee | $40,000 | $40,000 |
| Opening Assistance and Training Fee & Expenses | $20,000 | $22,500 |
| Training Wages and Related Travel and Living Expenses | $69,000 | $87,000 |
| Pre-Opening Manager Wages | $9,000 | $10,000 |
| Lease Deposit | $25,000 | $37,000 |
| Permits and Licenses | $8,500 | $50,000 |
| Grand Opening | $10,000 | $20,000 |
| Insurance, Miscellaneous Deposits & Prepaid Expenses | $20,000 | $32,500 |
| Additional Funds (Three Months) | $50,000 | $71,500 |
| Total Investment | $1,471,500 | $1,793,500 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
For Dos Coyotes specifically, the exact figures for required capital, liquid assets, and net worth might not be publicly available. However, I can provide you with estimates based on similar franchises in the fast-casual restaurant industry.
- Required Capital Opening a franchise like Dos Coyotes typically requires an initial investment ranging from approximately $1.47 million to $1.79 million. This estimate includes costs such as franchise fees, build-out expenses, equipment, and initial inventory. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Franchisees are often required to have liquid assets in the range of $100,000 to $300,000 to ensure they have enough working capital to manage day-to-day operations and cover unexpected expenses.
- Net Worth A potential franchisee might be expected to have a net worth of around $500,000 to $1 million. This requirement ensures that the franchisee has the financial stability to support the business and manage potential risks.
These estimates are based on industry standards and could vary depending on the specific franchise, location, and other factors. It’s always a good idea to consult directly with the franchise for precise requirements.
How much does a Dos Coyotes franchise owner make?
Calculating the salary of a Dos Coyotes franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Dos Coyotes franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Dos Coyotes Revenue & Gross Sales
While specific revenue figures for Dos Coyotes franchises are not publicly disclosed, the franchise is recognized for its consistent financial performance, driven by its unique Southwestern-Californian fusion menu and loyal customer base. Fast-casual franchises like Dos Coyotes have the potential to achieve strong sales, especially when strategically located in areas with high foot traffic and managed with a focus on quality and customer experience. By maintaining operational excellence and capitalizing on the brand’s distinctive appeal, franchise owners can position themselves for significant revenue generation and attractive returns on their investment.
Which key factors impact the average revenue performance of Dos Coyotes franchisees?
Several factors likely contributed to the performance of Dos Coyotes franchisee median gross sales over the past year. One key factor is the brand’s emphasis on fresh, locally-sourced ingredients, which resonates with consumers increasingly focused on quality and health-conscious dining. Additionally, Dos Coyotes’ adaptability to customer preferences, including customizable menu options, has helped maintain strong customer loyalty. The rise in digital ordering and takeout services also played a role, as the franchise effectively leveraged these channels to meet the growing demand for convenience. Lastly, their community engagement initiatives have strengthened local support, further boosting sales performance compared to the previous year.
Dos Coyotes Franchise Operational Costs
Operational costs for a franchise like Dos Coyotes are the ongoing expenses required to manage the day-to-day operations of the business. These costs are essential for maintaining the business’s functionality and ensuring smooth operations. For a Dos Coyotes franchise, operational costs include:
- Food and Beverage Costs The expenses incurred from purchasing fresh, high-quality ingredients needed to prepare the menu items, such as meats, vegetables, salsas, and tortillas.
- Labor Costs Wages, salaries, and benefits for employees, including kitchen staff, front-of-house workers, and managers involved in daily operations.
- Rent or Mortgage Payments The cost of leasing or owning the property where the restaurant is located. This includes monthly rent or mortgage payments, as well as property taxes and insurance.
- Utilities Expenses for electricity, water, gas, internet, and other utilities necessary for running the restaurant efficiently.
- Maintenance and Repairs Costs associated with the upkeep of the building, kitchen equipment, and dining area. This includes routine maintenance as well as any unexpected repairs.
- Supplies and Inventory This includes kitchen supplies, cleaning products, uniforms, and inventory management costs to ensure smooth daily operations.
- Local Marketing and Promotions While Dos Coyotes franchisees may not have a national ad fund requirement, investing in local marketing and community engagement is crucial to attract and retain customers.
- Insurance Costs for various insurance policies, including property insurance, liability insurance, and worker’s compensation insurance.
- Technology and Equipment Expenses for maintaining and upgrading point-of-sale systems, kitchen equipment, and any other technological infrastructure necessary for operations.
- Miscellaneous Costs Other operational expenses such as licenses, permits, professional fees (e.g., legal and accounting services), and any other costs that arise from running the business.
Careful planning and budgeting for these operational costs are essential for the financial health and success of your Dos Coyotes franchise.
Dos Coyotes Franchise Fees
Operational costs for a Dos Coyotes franchise include several ongoing fees that are essential for maintaining the business’s functionality and supporting the brand’s marketing efforts. These fees are typical of franchise agreements and contribute to both local and broader marketing initiatives, as well as the overall use of the brand. Here are the key fees to consider:
- Franchise Royalty Fee 5% of Gross Sales, due weekly.
- Local Marketing Commitment 2% of Gross Sales, due as incurred.
- Marketing Production Fund Fee Up to 1.5% of Gross Sales, due weekly.
- Additional Fees There might be other fees related to specific operational needs or franchise requirements that could arise, so it’s important to be prepared for these as well.
These fees are crucial for sustaining the franchise’s operations and ensuring that the brand continues to thrive in the competitive fast-casual dining market. Reviewing the franchise disclosure document (FDD) will provide a complete understanding of all potential costs.
Dos Coyotes Franchise Earnings
While specific earnings data for Dos Coyotes franchises is not available, we can provide an informed overview based on industry standards and the characteristics of the franchise. Dos Coyotes, with its distinctive Southwestern-Californian fusion menu and strong regional following, has the potential to generate substantial revenue in the fast-casual dining sector. Key factors such as location, customer traffic, and effective management are critical in determining a franchise’s financial success.
Industry benchmarks for similar fast-casual franchises indicate that gross sales can vary widely, with well-placed and efficiently managed franchises achieving impressive sales figures. The initial investment and ongoing costs, including fees for royalties and marketing, should be carefully evaluated when estimating potential earnings. Franchises with robust support systems and comprehensive training programs, like Dos Coyotes, are generally better positioned to achieve profitability.
Prospective franchisees should conduct thorough market research, considering factors such as local competition and demographic trends. By leveraging the brand’s unique appeal and adhering to best operational practices, a Dos Coyotes franchise can become a profitable venture, aligning with the earnings potential seen in successful fast-casual franchises. Consulting with current franchisees and financial advisors can also provide valuable insights into setting realistic earnings expectations.
How to Open a Dos Coyotes Franchise
Becoming a Dos Coyotes franchisee involves a series of well-structured steps designed to ensure that both the franchisee and the franchisor are well-aligned for a successful partnership. Here’s a breakdown of the process:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Discovery Day If you’re still interested after reviewing the FDD, you’ll be invited to attend a Discovery Day at Dos Coyotes’ headquarters. During this visit, you’ll meet with key members of the franchise team, tour existing locations, and gain a deeper understanding of the business operations and culture.
- Franchise Agreement Following Discovery Day, if both parties are confident in moving forward, you’ll sign the Franchise Agreement. This contract formalizes your commitment and outlines all the terms and conditions of your franchise ownership.
- Site Selection and Lease Negotiation With the agreement in place, the next step is selecting a suitable location for your restaurant. Dos Coyotes’ real estate team will assist you in choosing a site that meets the brand’s criteria. Once a location is identified, you’ll work on securing a lease and finalizing the terms.
- Training Program Before opening, you’ll undergo a comprehensive training program provided by Dos Coyotes. This training covers all aspects of running the franchise, from day-to-day operations and customer service to marketing and financial management.
- Build-Out and Pre-Opening Preparations Once your site is secured, you’ll begin the build-out process, transforming the space into a Dos Coyotes restaurant. During this time, you’ll also work on pre-opening tasks such as hiring staff, ordering inventory, and executing a local marketing plan.
- Grand Opening After the build-out is complete and all preparations are in place, you’ll open your Dos Coyotes restaurant to the public. The franchise team will typically provide on-site support during the initial opening phase to ensure a smooth launch.
- Ongoing Support Even after your restaurant is up and running, Dos Coyotes will continue to provide ongoing support in areas like marketing, operations, and menu development to help you succeed as a franchisee.
Pros & Cons
Pros
Unique and Appealing Menu: Dos Coyotes offers a distinctive Southwestern-Californian fusion menu that stands out in the fast-casual dining space, attracting a loyal customer base and offering a strong niche market.
Strong Community Engagement: The franchise’s commitment to local community involvement can help build a strong customer base and positive brand recognition in your area.
Customization Options: The ability to customize menu items appeals to a broad range of customers, from health-conscious diners to those looking for bold, flavorful meals, which can drive repeat business.
Cons
Regional Brand Recognition: Dos Coyotes is primarily known in specific regions, so expanding into new areas might require significant local marketing efforts to build brand awareness.
Competitive Market: The fast-casual dining sector is highly competitive, with many established brands vying for customer attention, which may require aggressive marketing and operational excellence to stand out.
Operational Demands: Running a restaurant franchise, particularly one that emphasizes fresh, made-to-order meals, can be labor-intensive and require a hands-on management approach.
Limited National Presence: The franchise’s limited national footprint might pose challenges for those looking to invest in areas outside its core markets, potentially impacting initial customer traction.
