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№ 01Buying & Selling a Business · Franchise Resale · Ontario

Buying a Mucho Burrito franchise

Mucho Burrito sits within MTY Food Group's Mexican-concept brand family, running from both food courts and standalone strip-mall storefronts across Ontario — which means a resale needs to confirm not just the lease and the franchisor's consent, but which current-form agreement and approved-supplier arrangements actually apply after MTY's own consolidation of its Mexican-concept brands over the years.

№ 01.1The Resale, End to End

From offer to ownership

Mucho Burrito resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.

Getting approved

01

Conditional offer & deposit

Buyer and seller sign, with a deposit held in trust and conditions built around franchisor consent and a clean lease assignment.

1–2 weeks
02

Franchisor application & consent review

MTY Food Group reviews the incoming operator's application and financial qualification, and considers any right of first refusal.

3–6 weeks
03

Disclosure considerations

A franchise disclosure document may still be required even where the deal is framed as a private resale — Ontario courts read the resale exemption narrowly, so this gets confirmed early rather than assumed.

assessed early, in parallel

Getting to closing

04

Lease assignment & supply-chain confirmation

Landlord consent to assign the premises, alongside confirming the approved-supplier and food-distribution accounts the location depends on will continue for the incoming operator.

2–6 weeks
05

Training & transfer approval

The incoming owner, or a designated manager, typically completes MTY's operator training before or shortly after taking over.

1–3 weeks
06

Closing & after

Funds, keys, and signed documents change hands; we track final franchisor sign-off and supplier-account confirmations through to completion.

1 day, plus a short tail
Timelines vary by franchisor approval speedWe track every deadline so nothing lapses.
№ 01.2About the System

About the Mucho Burrito system

Listed on MTY Food Group's official franchise-directory recruitment page

National Mexican QSR chain with numerous Ontario locations

№ 01.3Deal Structure

Asset sale or share sale?

This is the first real decision in a Mucho Burrito resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.

QuestionAsset purchaseShare purchase
What you buyThe location's assets — kitchen equipment, leasehold improvements, inventory, and the benefit of the existing franchise agreement, subject to consent.The shares of the operating company — everything it owns, and everything it owes.
Franchisor consent & ROFRRequired for this specific location, and typically the pacing condition on the whole deal.Required for the change of control itself — MTY reviews who is actually taking over the company.
Supply & vendor agreementsApproved-supplier and food-distribution agreements typically follow the location once the franchisor consents to the transfer — confirmed, not assumed.Usually reassigned along with the company, since the operating entity doesn't change.
The leaseNeeds landlord consent to assign, timed alongside the franchisor's own approval.Usually stays in place, unless the lease has its own change-of-control clause.
Tax angleBuyer gets a stepped-up cost base on the assets purchased.Seller may access the lifetime capital gains exemption on qualifying shares.
Typical use for a Mucho Burrito locationThe default for a single location changing hands.Less common — occasionally used where an operator holds several MTY-family locations under one company.
What you buy
Asset sale

The location's assets — kitchen equipment, leasehold improvements, inventory, and the benefit of the existing franchise agreement, subject to consent.

Franchisor consent & ROFR
Asset sale

Required for this specific location, and typically the pacing condition on the whole deal.

Supply & vendor agreements
Asset sale

Approved-supplier and food-distribution agreements typically follow the location once the franchisor consents to the transfer — confirmed, not assumed.

The lease
Asset sale

Needs landlord consent to assign, timed alongside the franchisor's own approval.

Tax angle
Asset sale

Buyer gets a stepped-up cost base on the assets purchased.

Typical use for a Mucho Burrito location
Asset sale

The default for a single location changing hands.

We tell you which structure fits — before you sign anything.

№ 01.5Costs & Fees

You'll know the number before we start

No open-ended hourly surprises — the cost is confirmed in writing before any work begins.

Type of workFeeHow it's confirmed
Straightforward purchase or saleStarting from $3,388.87
Our charges · taxes included
Confirmed in writing once we see the agreement.
Larger or more complex dealQuoted to scopeShort call → fixed written quote before any work begins.
Searches, filings & third-party feesAt costItemized on your invoice, not marked up.
Franchisor transfer/application fees, landlord consent costs, and a broker's success fee if the deal was listed — all confirmed once we see your agreement.
Most deals start here

An owner-run business

A single Mucho Burrito location changing hands between one buyer and one seller, with a straightforward lease and standard supplier-account continuity.

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A bit more involved

A larger or more complex deal

An operator holding several MTY-family Mexican-concept locations selling as one operating company, or a resale where confirming the current agreement and active supplier terms takes some untangling first.

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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.

№ 01.6Before You Ask

Common questions

Do the food-supplier accounts transfer automatically with the location?

Not automatically — approved-supplier and food-distribution agreements typically need the franchisor's confirmation before they carry over to a new operator. We check this alongside the franchisor consent process rather than leaving it to be discovered on your first order after closing.

Mucho Burrito has gone through some brand changes under MTY — how do I know which franchise agreement actually applies?

MTY has consolidated several Mexican-concept brands over the years, so confirming the current-form agreement — and that the franchisor entity named on it is the one actually reviewing your resale — is one of the first things we verify, before it becomes an issue at closing.

Does buying an existing Mucho Burrito location mean I skip the disclosure document?

Not necessarily. Ontario courts have read the resale-disclosure exemption narrowly, and franchisor involvement in the resale can be enough to trigger a full disclosure requirement anyway. Whether it applies to your deal gets confirmed early, not assumed from the word 'resale.'

If MTY steps in ahead of my deal, does that affect any other MTY-brand locations I already operate?

Not automatically — a right of first refusal is generally assessed against the specific location being sold, not your broader relationship with MTY. We still confirm there's no cross-default risk to your existing locations before you're firm on a new purchase.

If the location I'm buying recently converted between MTY banners, does that affect how much training I need before taking over?

It can — a recently converted location may still be settling into brand standards, which can extend the practical handover period even where formal training itself is a set program. We flag that during diligence so your closing timeline accounts for it.

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 Mucho Burrito or its franchisor.

Ready to begin?

Tell us about your Mucho Burrito resale — we'll point you the right way and confirm the cost in writing before any work begins.

Prefer to talk first? Call 1-844-900-1070 — it’s free.
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