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FRANCHISE RESALES

Buy an On The Border Franchise

On The Border Mexican Grill & Cantina is a full-service Tex-Mex casual-dining chain founded in October 1982 in Dallas, Texas. The brand built its name on Border-style cooking: fresh-pressed tortillas, tableside guacamole, house-made salsas, sizzling mesquite-grilled fajitas and hand-crafted margaritas, served in a lively dining room and cantina setting.

The business is a sit-down restaurant model that combines dine-in, bar and patio service with a growing off-premise side, including delivery and ghost-kitchen formats. On The Border has long positioned itself as one of the largest Mexican casual-dining chains in the United States, and today operates roughly 80 restaurants — a mix of company-owned units across multiple states and franchised locations in the U.S. and South Korea.

After a Chapter 11 filing in early 2025, the brand was acquired by Houston-based Pappas Restaurants, the family-owned group behind Pappadeaux Seafood Kitchen and Pappasito’s Cantina. New ownership brings deep Tex-Mex and full-service operating experience, along with a stated plan to modernise the menu, restaurants and guest experience.

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Why buy an On The Border Franchise?

Buying an On The Border franchise means stepping into a nationally recognised Tex-Mex name with more than four decades of brand equity and a loyal guest following. The concept sits in the full-service casual-dining segment, with bold, value-driven food and an award-winning margarita programme that gives the brand a clear identity in a crowded Mexican-dining market.

Ownership under Pappas Restaurants is a meaningful signal. Pappas runs respected Tex-Mex and full-service brands such as Pappasito’s Cantina, and brings operational depth, supply-chain scale and hospitality discipline to a brand working through a turnaround. Franchisees draw on the company’s Restaurant Support Center for operations, marketing, supply chain and technology, alongside off-premise formats such as ghost kitchens that extend revenue beyond the dining room.

On The Border Franchise Costs & Information

Based on 2023 data reported in the 2024 FDD

  • Brand Profile

    • Year Founded

      1982

    • Franchising Since

      1996

    • New Startup Cost

      $1,425,500 – $5,058,000

    • Avg. Resale Price

      Contact us for details

  • Franchise Fees

    • Initial franchise Fee

      $30,000

      for new territories

    • Transfer Fee

      $2,500 – $25,000

    • Royalty Fee

      4%

      of Gross Sales

    • Marketing Fee

      2%

      of Gross Sales

  • Unit Performance

    • Total Units *

      134

    • New Units Opened *

      2

    • Units Transferred *

      0

    • Avg. Unit revenue *

      $2,536,791

    * Based on 2023 data reported in the 2024 FDD

On The Border – Additional  Information

  1. Training & Support

    Franchisees are backed by On The Border's Restaurant Support Center, with dedicated teams covering operations and training, marketing, supply chain and information technology. Initial training is substantial, with around 300 hours of on-the-job training plus roughly 15 hours of classroom instruction, and ongoing operational and marketing support continues once a restaurant is running. Prospective partners meet the executive team at a Discovery Day during onboarding. Buyers of an existing On The Border unit should confirm what transfer training and Restaurant Support Center access carries over to incoming ownership.

  2. Ideal Owner

    On The Border suits experienced full-service restaurant operators rather than first-time owners. The model is operations-led, with the owner accountable for running a sizeable sit-down kitchen and bar, managing and retaining hourly teams, controlling food and labour costs, and holding consistent brand and guest-experience standards across dine-in and off-premise service. Multi-unit operators and hospitality groups comfortable with high-volume casual dining and a structured franchise relationship tend to fit best. A hands-on, hospitality-minded approach matters in a brand built on energy and service.

  3. Recognition & Awards

    On The Border is widely regarded as one of the largest Mexican casual-dining chains in the United States, with brand recognition built over more than 40 years of operation. Its margarita programme has earned repeated "Best Margarita" and "Best Restaurant for Margaritas" honours in local and regional polls, including a 2026 Best of the Region placement. The 2025 acquisition by Pappas Restaurants, operator of Pappadeaux and Pappasito's Cantina, adds further credibility. For resale buyers, national brand strength should be weighed alongside the specific territory's local reviews, reputation and guest following.

  4. Industry / Market

    The U.S. Mexican restaurant industry is large and established, valued at roughly $105 billion in 2026 (IBISWorld), making Mexican one of the most popular cuisines in American dining. Casual-dining chains face strong competition from fast-casual rivals and rising costs, but demand for Tex-Mex remains durable, supported by broad consumer familiarity and the growth of off-premise ordering through delivery and ghost kitchens. For resale buyers, local factors such as nearby competition, daypart traffic and the strength of a unit's takeout business shape performance as much as national trends.

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