Here is some information from Wikipedia:
Panchito's full name is Panchito Romero Miguel Junipero Francisco Quintero González III. Panchito or Pancho, as well as Paco or Paquito are nicknames for Francisco, which is also his fifth name.
The unusually large name is making fun of the fact that, in many Spanish speaking countries, people use two last names (which, in some cases, are composed of two or more words) and commonly has one or even more middle names, and in some cases, like Juan Nepomuceno Carlos Pérez-Rulfo Vizcaíno's or María del Rosario Mercedes Laura Jennifer Pilar Martínez Molina Baeza's, they are pretty large.
Quintero González is Panchito's last name; according to Spanish naming, Quintero would be his father's last name and González his mother's.
As there is no reference to his surname "Pistoles", some people assume that it is another nickname. The word "Pistoles" does not exist in Spanish, although "Pistolas" would mean guns, specifically handguns or pistols. Probably the -E in Pistoles was a phonetical adaptation to ease pronunciation for non-Spanish-speakers in the United States..
Here's the same basic info from ThinkBabyNames.com:
Panchito as a boy's name is a variant of Francis (Latin), and the meaning of Panchito is "frenchman; free man".So it means "Free Man"?
However, here's what Cha Cha says: