190
154
$250,000
$30,000
$777,200
No
Baja Fresh stands out as a premier fast-casual Mexican-style franchise in the U.S., offering a fresh, vibrant, and health-conscious alternative to traditional fast food. Known for its commitment to quality—eschewing microwaves, freezers, and pre-packaged ingredients—this brand has built a strong reputation for flavorful burritos, tacos, and salads made from scratch with farm-fresh produce and line-caught fish. With a proven brand philosophy, “Eat Well. Live Fresh.”, Baja Fresh captures a growing consumer demand for transparency, freshness, and flavor in casual dining.
Strong Brand Appeal: Established since 1990, Baja Fresh has cultivated decades of credibility in the fast-casual Mexican food space.
Thriving Market Sector: The U.S. market for Mexican-style fast-casual dining is growing rapidly, with an expected annualized industry growth of 6.8%, projected to reach $75.8 billion by 2025.
Freshness Differentiation: By rejecting microwaves, freezers, and canned ingredients, the brand stands apart, offering a healthier, fresher alternative that resonates with today’s health-conscious diners.
Scalable Models: Choice between full-size restaurants and Express (non-traditional, compact) formats allows flexibility and adaptability to diverse locations—from food courts to college campuses
Founded in 1990 in Newbury Park, California, by Jim and Linda Magglos, Baja Fresh was born from a simple but powerful idea: deliver authentic, flavorful Mexican food made from scratch daily—without microwaves, freezers, or canned ingredients. This philosophy, anchored in the now-iconic motto “Eat Well. Live Fresh.”, quickly resonated with consumers who were looking for a healthier, fresher alternative to traditional fast food.
By 1995, Baja Fresh began franchising, and its concept proved highly scalable. Within just two years, the chain grew from 31 units in 1997 to nearly 249 restaurants by the early 2000s across the United States. This rapid growth cemented Baja Fresh as one of the leading pioneers in the fast-casual Mexican dining sector, a category that has since become one of the fastest-growing segments of the restaurant industry.
2002 – Acquired by Wendy’s International for approx. $275 million, marking a major milestone in brand recognition and credibility.
2006 – Sold to BF Acquisition Holdings, a group of franchise investors, for about $31 million. At the time, Baja Fresh operated 144 company-owned and 154 franchised units across numerous U.S. states and Washington D.C.
2016 – Acquired by MTY Food Group (via its U.S. subsidiary, Kahala Brands) for approx. $27 million. MTY is one of the world’s largest franchising companies, with a diverse portfolio of over 80 quick-service and casual-dining brands worldwide.
Today, Baja Fresh operates with around 80 locations (as of 2024) in the United States and select international markets. The brand is headquartered in Scottsdale, Arizona, under MTY Franchising USA Inc. Baja Fresh continues to position itself as a premium fast-casual Tex-Mex brand, competing in the same industry category as Chipotle, Qdoba, and Moe’s Southwest Grill.
Industry: Fast-Casual / Tex-Mex Dining
Core Offering: Burritos, tacos, salads, bowls, quesadillas, nachos, and freshly prepared sides.
Differentiator: No microwaves, freezers, or lard; everything is made fresh daily, with real ingredients sourced from approved suppliers.
Target Market: Health-conscious, convenience-driven customers seeking quality and authenticity in a casual dining setting.
Over the decades, Baja Fresh has transitioned from a regional California concept to a nationally recognized franchise opportunity. It has remained true to its founding values—delivering fresh, made-to-order meals in a quick-service format—while evolving with modern consumer demands such as sustainability, digital ordering, and loyalty programs.
Baja Fresh places a strong emphasis on franchisee success through a comprehensive package of pre-launch support, structured training, operational assistance, and ongoing marketing guidance. The brand understands that a successful franchise system depends on well-prepared owners and consistent operations, so it has designed its support model to walk franchisees through every stage—from opening day to long-term growth.
Before opening doors, franchisees receive extensive preparation to ensure a smooth start:
Site Selection & Lease Negotiation – Assistance with identifying high-traffic areas, analyzing demographics, and negotiating favorable lease terms.
Design & Construction Guidance – Full support in architectural design, layout optimization, and equipment planning to ensure compliance with brand standards.
Vendor & Supply Chain Access – Connections to Baja Fresh’s approved network of vendors for fresh produce, proteins, and specialty ingredients, ensuring quality consistency.
Pre-Opening Marketing Plan – Guidance on budgeting and executing local promotions to generate buzz and maximize opening day traffic.
Franchisees and their management teams go through an in-depth training program that blends classroom learning with real-world, in-store practice:
Classroom Training – Approximately 40 hours at the corporate training center in Scottsdale, Arizona, covering brand history, financial management, HR, and compliance.
Hands-On In-Store Training – Around 240 hours of operational training at an existing Baja Fresh location. Topics include food preparation standards, safety protocols, guest service, POS system use, and leadership skills.
Management & Staff Training – Focused modules designed to equip franchise owners and store managers with team leadership, scheduling, and cost-control skills.
Once open, franchisees continue to benefit from robust operational guidance:
Field Operations Support – Dedicated regional consultants visit stores regularly to ensure operational efficiency and provide hands-on coaching.
Operations Manual – Comprehensive manual covering recipes, systems, policies, and troubleshooting.
Purchasing & Supply Chain – Leveraged national purchasing power ensures access to competitively priced, high-quality supplies and ingredients.
To drive customer traffic and brand awareness, Baja Fresh provides multiple layers of marketing assistance:
Grand Opening Campaigns – Customized promotional plans to create a strong initial customer base.
National & Regional Advertising – Inclusion in cooperative marketing campaigns that leverage the brand’s reputation.
Digital Marketing Tools – Access to branded templates, loyalty programs, social media assets, and digital advertising strategies.
Public Relations Support – Assistance with local community engagement and media coverage to boost store visibility.
Baja Fresh ensures that franchisees are never left alone after opening:
Hotline & Online Resources – Dedicated franchisee portal with updates, news, training videos, and best practices.
Continuous Training Opportunities – Refresher courses, webinars, and new product rollouts.
Research & Development – Constant menu innovation and product testing to keep offerings fresh, competitive, and aligned with consumer trends.
Peer Network Access – Franchisees benefit from shared knowledge and experiences across the Baja Fresh franchise community.
Baja Fresh seeks passionate entrepreneurs who not only have the financial capacity to invest but also align with the brand’s philosophy of “Eat Well. Live Fresh.” An ideal franchisee is someone who values fresh food, operational excellence, and customer service while being committed to building a scalable business within the thriving fast-casual Mexican dining industry.
Passion for Fresh, Healthy Food
Franchisees should have a genuine appreciation for quality ingredients, healthier dining options, and food innovation. Baja Fresh customers seek authenticity and freshness, so franchisees must be committed to maintaining these brand promises.
Entrepreneurial Spirit & Leadership Skills
While direct restaurant experience is helpful, it is not mandatory. Instead, Baja Fresh looks for driven, business-minded individuals who are goal-oriented, adaptable, and comfortable managing teams in a fast-paced environment.
Leadership qualities are essential to motivate staff, deliver consistent guest experiences, and drive long-term profitability.
Customer-Centric Mindset
A successful Baja Fresh franchisee is committed to exceptional guest service and understands that loyalty is built through consistent food quality, hospitality, and community engagement.
Financial Capability
Minimum Net Worth: $500,000 (some sources suggest up to $1 million for multi-unit investors).
Liquid Capital: At least $250,000 to cover startup costs and provide financial flexibility during the early stages.
Investment capacity should allow for scaling into multiple locations over time if desired.
Operational Commitment
Franchisees should be hands-on operators or partner with a qualified operator/manager. Involvement in daily operations ensures high quality and accountability.
Prior experience in foodservice, hospitality, or retail is beneficial but not required if the franchisee brings strong management and organizational skills.
Location Preference
Best suited for high-traffic urban and suburban areas with strong demographics for fast-casual dining.
Ideal territories include California, Texas, Arizona, Washington, Nevada, and other major U.S. metropolitan markets, though opportunities are available nationwide.
Commitment to Growth & Brand Standards
Franchisees must be open to continuous training, marketing programs, and operational standards established by Baja Fresh.
They should also have the vision to grow into multi-unit ownership where possible, capitalizing on economies of scale and brand recognition.
Experienced Restaurateurs looking to diversify with a strong Tex-Mex fast-casual brand.
Corporate Professionals & First-Time Entrepreneurs seeking a proven, structured franchise system with ongoing support.
Multi-Unit Investors interested in expanding across territories with flexible store formats (traditional or express models).
Community-Oriented Owners who value local marketing, outreach, and building lasting customer loyalty.
Category | Estimated Cost / Requirement |
---|---|
Total Investment (Traditional Restaurant) | $428,560 – $1,012,290 |
Total Investment (Express/Non-Traditional Model) | $224,950 – $777,200 |
Franchise Fee | $30,000 – $50,000 (varies by model & location) |
Minimum Net Worth Required | $500,000 – $1,000,000 |
Minimum Liquid Capital Required | $250,000 |
Royalty Fee | 5% of gross sales |
Advertising/Marketing Fee | 3% – 4% of gross sales |
Infrastructure / Build-Out Costs | Up to $418,000 (construction, architecture, design) |
Equipment, Furnishings & POS | Up to $338,000 |
Initial Inventory & Uniforms | $4,000 – $8,000 |
Pre-Opening Training & Other Fees | $25,000 – $40,000 |
Grand Opening Marketing Budget | $10,000 – $15,000 |
Working Capital (First 3 Months) | $20,000 – $75,000 |
Average Unit Sales (AUV) | $750,000 – $810,000 annually |
Break-Even Point | Approx. 18 – 20 months |
Expected ROI / Payback Period | 18 – 24 months, depending on location & operations |