Barburrito is an Ontario-founded, GTA-concentrated fast-casual Mexican chain built around an assembly-line service format — steam tables, tortilla presses, and a sneeze-guard prep counter that customers move down as their order is built. That prep-line equipment is often owned, leased, or financed separately from the real property lease, so a resale's diligence has to trace two different sets of continuing obligations, not one.
Barburrito resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.
Getting approved
The offer sets price and structure, conditioned on franchisor consent, an assignable lease, and confirming which prep-line equipment is owned outright versus leased or financed.
1–2 weeks†Barburrito's head office reviews the proposed buyer and deal terms, and may exercise a right of first refusal before the sale can proceed.
several weeks, typically†A franchise disclosure document may still be required for this resale — Ontario courts read the resale-disclosure exemption narrowly, so franchisor involvement in the sale can trigger it even where it's framed as a private deal.
assessed early†Getting to closing
The landlord's consent to assign the lease is pursued alongside a PPSA search confirming what steam tables, presses, and prep-counter equipment are free and clear versus subject to an equipment lease or finance agreement.
2–6 weeks†The incoming owner typically completes Barburrito's assembly-line service and food-safety training before or shortly after taking over.
1–3 weeks†Funds and keys change hands, prep-line inventory is counted and settled at cost, and the franchisor confirms the transfer is complete.
1 day, once conditions are met†Official barburrito.ca site ('Proudly Canadian Since 2005') runs regular franchise discovery webinars and accepts direct franchise applications for Canadian applicants
Ontario-founded Mexican QSR chain with a concentrated GTA footprint; franchise inquiry form lists Ontario as a selectable province
This is the first real decision in a Barburrito resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.
| Question | Asset purchase | Share purchase |
|---|---|---|
| What you buy | The unit's assembly-line prep equipment, leasehold improvements, inventory, and the franchise agreement's benefit, subject to franchisor consent. | The shares of the operating company — everything it owns, and everything it owes. |
| Franchisor consent & ROFR | Required for the specific unit, often paired with a current-form agreement. | Required for the change of control itself. |
| Prep-line equipment | Confirming what's owned outright versus leased or financed is a standard part of diligence — a PPSA search shows what's already encumbered. | Equipment financing arrangements generally stay in place with the corporation. |
| The lease | Needs the landlord's written consent to assign, separate from the equipment financing. | Usually stays in place, unless the lease has its own change-of-control clause. |
| Tax angle | Buyer gets a stepped-up cost base on the assets purchased. | Seller may access the lifetime capital gains exemption on qualifying shares. |
| Typical use | The default for most single-unit resales. | Less common — occasionally used where an operator holds several units under one company. |
The unit's assembly-line prep equipment, leasehold improvements, inventory, and the franchise agreement's benefit, subject to franchisor consent.
The shares of the operating company — everything it owns, and everything it owes.
Required for the specific unit, often paired with a current-form agreement.
Required for the change of control itself.
Confirming what's owned outright versus leased or financed is a standard part of diligence — a PPSA search shows what's already encumbered.
Equipment financing arrangements generally stay in place with the corporation.
Needs the landlord's written consent to assign, separate from the equipment financing.
Usually stays in place, unless the lease has its own change-of-control clause.
Buyer gets a stepped-up cost base on the assets purchased.
Seller may access the lifetime capital gains exemption on qualifying shares.
The default for most single-unit resales.
Less common — occasionally used where an operator holds several units under one company.
We tell you which structure fits — before you sign anything.
No open-ended hourly surprises — the cost is confirmed in writing before any work begins.
| Type of work | Fee | How it's confirmed |
|---|---|---|
| Straightforward purchase or sale | Starting from $3,388.87 Our charges · taxes included | Confirmed in writing once we see the agreement. |
| Larger or more complex deal | Quoted to scope | Short call → fixed written quote before any work begins. |
| Searches, filings & third-party fees | At cost | Itemized on your invoice, not marked up. |
A single Barburrito location changing hands between one buyer and one seller, with a clean equipment ownership picture and a straightforward lease.
Start my file →A multi-unit operator adding a Barburrito location to an existing portfolio, or a resale where encumbered prep-line equipment needs to be resolved before terms are final.
Book a consultation →Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.
Not automatically assumed — a PPSA search is a standard step to confirm which steam tables, presses, and prep-counter equipment are owned outright versus subject to an equipment lease or lender's security interest, so the purchase agreement can address each accordingly.
The inspection covers the same general ground, but an assembly-line prep counter with steam-table holding temperatures is a specific focus point that a standalone kitchen-and-counter format wouldn't have in the same way.
The underlying mechanics stay the same — franchisor review of the buyer and terms, and a right-of-first-refusal window — but buyers sometimes find the process runs through a more direct relationship with head office than a large multinational's corporate franchise division.
Possibly. Ontario courts have read the resale-disclosure exemption narrowly, and franchisor involvement in matching a buyer to a seller can be enough to trigger a full disclosure requirement even where the deal is framed as a private resale.
That financing arrangement is either paid out at closing or assumed by the buyer with the lessor's consent — it's identified through the PPSA search and addressed directly in the purchase agreement, not left to be discovered afterward.
Related
Where we close franchise resale deals
Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Barburrito or its franchisor.
Tell us about your Barburrito resale — we'll point you the right way and confirm the cost in writing before any work begins.