How to Finance a Fajita Pete’s Franchise: Catering and Delivery
By Anthony Cornella
A Fajita Pete’s franchise loan funds a Tex-Mex restaurant built around catering and delivery, not just a dining room. That model shapes the loan: a smaller storefront, a kitchen sized for large orders, delivery vehicles and enough working capital to build catering accounts after opening.
US Professional Funding is not affiliated with, sponsored by or endorsed by Fajita Pete’s; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, so review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Fajita Pete’s Franchise Loan at a Glance
- Concept: Tex-Mex restaurant focused on catering and delivery, with dine-in and takeout as well.
- Menu: marinated beef and chicken fajitas, sides prepared daily, scratch-made tortillas and margaritas to go.
- Format: a small-footprint restaurant that delivers with its own drivers and caters to homes, parties and offices.
- Initial franchise fee, royalty and brand fund: listed in Items 5 and 6 of the current FDD; confirm the amounts with the franchisor.
- Estimated initial investment: listed in the Item 7 table of the current FDD.
- Net worth and liquidity requirements: confirm with the franchisor during discovery.
- SBA Franchise Directory: not currently listed, so plan for conventional financing unless the brand is added.
What Is Fajita Pete’s?
Fajita Pete’s is a Tex-Mex brand founded in Texas by Pedro “Pete” Mora. It built its reputation on fajitas delivered hot to homes and offices, along with catering for family gatherings, parties and corporate events. Guests can also dine in or pick up.
The company has grown largely through franchising across Texas and into other states, with franchisees opening in midsize markets as well as major metro areas. It markets itself to prospective owners as a small-footprint concept that can fit into desirable neighborhoods without the space a full-service Mexican restaurant needs.
Why the model matters to lenders. A catering and delivery restaurant earns money from large orders and repeat accounts, not just walk-in traffic. That can support sales from a smaller space, but it also makes results depend on the owner’s ability to sell catering, manage drivers and keep food quality consistent off-site. Lenders will look closely at how you plan to build that business.
Fajita Pete’s Franchise Costs
Most of a Fajita Pete’s franchise loan goes into the kitchen, the space and opening cash.
Initial franchise fee. Item 5 of the FDD lists the fee, when it is due and whether multi-unit buyers pay a different amount. Lenders typically expect it to come from your equity.
Lease and build-out. Restaurants usually open in leased retail space. The build-out covers the kitchen line, hood and fire suppression, grease trap, walk-in cooler, a modest dining and pickup area, and a staging area where catering and delivery orders are packed. A second-generation restaurant space with an existing hood can lower costs. Our article on restaurant build-out financing explains the options.
Equipment. Charbroilers or flat-top grills for fajitas, tortilla equipment, fryers, steam wells, refrigerated prep tables, warming cabinets, insulated catering carriers, point-of-sale and online ordering technology.
Delivery vehicles. Because the brand uses its own drivers, confirm whether the franchise requires company vehicles, branded wraps or driver reimbursement, and how that cost appears in the FDD.
Opening costs and working capital. Opening food and packaging inventory, staff training, grand opening marketing, insurance, licenses (including any liquor license for margaritas) and funds to cover payroll while catering accounts build.
Total investment. The Item 7 table lists each category with low and high estimates and a total. Look for:
- Initial franchise fee
- Leasehold improvements and construction
- Kitchen equipment, smallwares and furniture
- Technology, point-of-sale and online ordering systems
- Signage
- Delivery vehicles or related costs, if required
- Opening inventory and catering supplies
- Training expenses
- Grand opening marketing
- Insurance, deposits, licenses and permits
- Additional funds for the stated initial period
Ongoing Fees and How They Affect Your Loan
Royalty and brand fund. Item 6 of the FDD lists the royalty, usually a percentage of gross sales, and any brand or advertising fund contribution.
Technology and delivery-related fees. Look for online ordering, software and any fees tied to delivery platforms. Third-party delivery commissions, if you use them alongside your own drivers, can cut into margins.
Other fees. Transfer, renewal and additional training fees appear in Item 6 as well.
How lenders factor these costs in. A lender deducts royalties and fund contributions from projected sales, then checks whether what remains covers food costs, labor, rent, vehicle costs and debt service with room to spare. Our conventional loan calculator helps you test payments at different amounts.
Franchisor Requirements for New Owners
We could not verify published net worth and liquid capital minimums from the franchisor, so ask for them during discovery. Many recent openings have come from operators who signed for several restaurants, so expect questions about your capacity to develop a market.
Lenders add their own standards: verified cash for the down payment plus reserves, solid personal credit and restaurant or multi-unit management experience. Catering sales experience is a plus for this concept.
Ways to Own a Fajita Pete’s
A new restaurant. Most owners build a new location. Financing covers the build-out, equipment, fee and working capital and is underwritten on projections. See our restaurant start-up financing page.
Buying an existing restaurant. When a franchisee sells, the buyer gets an operating kitchen, staff and catering customers. Lenders rely on the restaurant’s tax returns and financial statements, and the franchisor must approve the transfer. Our article on buying a franchise resale covers due diligence.
Multi-unit development. The brand has signed several multi-unit agreements with experienced operators. Lenders generally fund the first restaurant, then later units as the group’s track record grows.
Financing Options for a Fajita Pete’s Franchise
Conventional term loans. Because the brand is not currently listed on the SBA Franchise Directory, a conventional business loan is the most direct route. Lenders will look for a larger down payment, collateral and restaurant experience.
SBA 7(a) loans. An SBA 7(a) loan can combine the fee, build-out, equipment and working capital, but only for franchises the SBA has found eligible. Ask the franchisor whether it plans to seek a directory listing.
SBA 504 loans. The 504 program finances owner-occupied real estate and long-lived equipment, and the same directory requirement applies to franchise borrowers.
Equipment financing. Grills, refrigeration, hoods and catering equipment can be financed or leased separately, which preserves cash. Learn about restaurant equipment financing and leasing.
Vehicle financing. If the restaurant owns delivery vehicles, they can often be financed on their own terms.
Working capital and lines of credit. Catering is seasonal and event-driven, with busy stretches around holidays, graduations and sports seasons and slower weeks in between. A line of credit or reserve helps with payroll and inventory. See our restaurant working capital options.
Seller financing on resales. A selling franchisee may carry a note for part of the price. Seller notes are typically subordinate to the primary loan.
SBA Loans and Fajita Pete’s
SBA loans to franchisees require that the brand appear on the SBA Franchise Directory, which shows that the SBA has reviewed the franchise documents for eligibility. Fajita Pete’s is not currently listed, so an SBA lender cannot use the SBA 7(a) or SBA 504 programs for a Fajita Pete’s franchise loan unless the brand is added.
If the franchisor applies and is approved, SBA financing becomes possible, with the SBA 7(a) program maximum currently at $5 million (program rules can change). Until then, plan around conventional loans, equipment financing and your own equity, and ask the franchisor about the status before you count on SBA terms.
How Lenders Evaluate a Fajita Pete’s Deal
Personal credit and financial history. Lenders review credit reports, debts and past borrowing, and usually require personal guarantees.
Net worth and liquidity. Conventional loans typically call for a meaningful equity contribution and cash reserves after closing.
Restaurant experience. Running kitchens, managing hourly staff and controlling food costs carries heavy weight, and catering sales experience helps.
Business plan and projections. Split projected sales among catering, delivery, takeout and dine-in. Show how you will win office and event accounts, staff drivers and handle peak catering days.
The FDD and franchise agreement. Lenders read Items 5, 6, 7, 10, 17 and 19, including whether the FDD contains financial performance representations. Our article on using the FDD in financing explains what they look for.
Site and lease. Access for delivery drivers, parking for pickups, nearby offices and households, and a lease term at least as long as the loan all matter.
Historical financials on resales. Buyers should expect to provide several years of statements and tax returns for the restaurant.
Catering, Delivery and Kitchen Capacity
A Fajita Pete’s kitchen has to handle large catering orders and steady delivery volume at the same time. That puts pressure on grill capacity, holding equipment, refrigeration and packing space, all of which affect build-out costs. Ask the franchisor for the standard equipment package and plan for any upgrades your market may need.
Delivery adds operating costs that a dine-in restaurant does not carry: driver wages, vehicle insurance, fuel and maintenance. Lenders will want those costs built into projections rather than treated as an afterthought.
Multi-Unit Growth and Development Agreements
A development agreement commits an owner to open several restaurants on a schedule. Lenders usually finance each restaurant as it is built, based on the performance of the units already open. Make sure the schedule allows time for each new restaurant to stabilize. Read more about multi-unit franchise financing.
Real-World Scenarios
An experienced restaurant operator. A multi-unit operator of other restaurants signs for several Fajita Pete’s locations and finances the first with a conventional term loan plus an equipment lease.
A catering professional turned owner. A former corporate catering manager partners with an experienced kitchen manager. Their projections lean on office accounts they can document, which strengthens the conventional loan request.
Buying an established location. A buyer acquires an operating restaurant with steady catering customers. The lender relies on the restaurant’s tax returns, and the seller carries a small subordinate note.
Common Mistakes to Avoid
- Counting on SBA financing before confirming the brand’s directory status
- Underbuilding the kitchen for catering volume
- Leaving driver, vehicle and insurance costs out of projections
- Overlooking liquor license costs and timing for margaritas
- Signing a lease shorter than the loan term
- Opening without a working capital cushion for slow event seasons
See more in our list of restaurant loan mistakes.
Next Steps to Finance Your Fajita Pete’s Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and an accountant.
Step 2: Confirm requirements and SBA status. Ask about net worth, liquidity, experience, development expectations and any plans to seek an SBA directory listing.
Step 3: Get pre-qualified. Talk with a financing specialist about conventional and equipment options.
Step 4: Secure a site. Get build-out bids before signing a lease.
Step 5: Prepare your loan package. Include your personal financial statement, tax returns, resume, projections and contractor bids.
Step 6: Close and build. Coordinate the loan closing with the lease, franchise agreement and construction schedule.
Fajita Pete’s Franchise Loan FAQs
How much does a Fajita Pete’s franchise cost?
The Item 7 table in the current FDD lists the estimated initial investment. Build-out and kitchen equipment drive most of the range.
What is the Fajita Pete’s franchise fee?
Item 5 of the FDD lists the initial franchise fee. Ask the franchisor for the current amount.
What royalty does Fajita Pete’s charge?
Item 6 of the FDD lists the royalty, brand fund contribution and other recurring fees.
Can I get an SBA loan for a Fajita Pete’s franchise?
Not while the brand is absent from the SBA Franchise Directory. Ask the franchisor whether it is seeking a listing, and plan for conventional financing in the meantime.
Can I finance kitchen equipment separately?
Yes. Equipment financing or leasing can cover grills, refrigeration, hoods and catering equipment.
Can I buy an existing Fajita Pete’s?
Yes, if one is for sale and the franchisor approves the transfer. Lenders use the restaurant’s historical financials.
Do I need restaurant experience for a Fajita Pete’s franchise loan?
Lenders weigh restaurant experience heavily, especially for conventional loans. A first-time owner can strengthen the request by partnering with or hiring an experienced manager.
Does Fajita Pete’s offer financing?
Item 10 of the FDD discloses any franchisor financing.
How long is the franchise agreement?
Item 17 of the FDD lists the term, renewal and transfer conditions.
Final Thoughts
A Fajita Pete’s restaurant earns much of its business through catering and delivery, so a sound financing plan pays for a kitchen built for volume, accounts for drivers and vehicles, and keeps cash in reserve for slower event seasons. Because the brand is not on the SBA Franchise Directory, most buyers will structure a Fajita Pete’s franchise loan as conventional financing paired with equipment financing.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Explore our franchise financing and restaurant loan programs.
