Taco John’s Franchise FDD, Profits & Costs (2025)
Taco John’s, a prominent name in the fast food industry, boasts a vibrant history and a distinctive approach to Mexican cuisine.
Founded in 1969 in Cheyenne, Wyoming, the brand was born from a simple taco stand that quickly gained popularity due to its unique flavors and dishes.
Two local businessmen recognized the potential of the stand and acquired the franchise rights, officially launching Taco John’s, named in honor of the original founder, John.
Headquartered in Cheyenne, Wyoming, Taco John’s it one of the largest Mexican quick-service restaurant brands in the U.S.
The franchise started expanding its reach in 1969, just a year after its inception, and has developed a reputation for its signature items like Potato Olés®, Meat and Potato Burritos, and the cultural phenomenon of “Taco Tuesday,” which it initiated.
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Initial Investment
How much does it cost to start a Taco John’s franchise? It costs on average between $770,000 – $2,079,000 to start a Taco John’s franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property. Taco John’s offers 4 types of franchises:
| Restaurant Type | Initial Investment Range |
|---|---|
| Freestanding Traditional Restaurant | $1,330,000 to $2,079,000 |
| Endcap Traditional Restaurant | $770,000 to $1,301,000 |
| Drive Thru Olé Traditional Restaurant | $950,000 to $1,704,000 |
| Non-traditional Restaurant | $437,000 to $949,000 |
We are summarizing below the main costs associated with opening a Taco John’s Freestanding Traditional Restaurant. For more information on costs required to start a Taco John’s franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $20,000 to $25,000 |
| Site Preparation and Completion Costs | $250,000 to $500,000 |
| Construction Costs | $650,000 to $900,000 |
| Operating Equipment | $185,000 to $250,000 |
| Furniture, Fixtures and Decor | $35,000 to $55,000 |
| Signage and Installation | $30,000 to $70,000 |
| Point of Sale System | $20,000 to $35,000 |
| Digital Menu Boards | $35,000 to $65,000 |
| Initial Inventory | $15,000 to $22,000 |
| Grand Opening Marketing | $10,000 to $12,000 |
| Pre-Opening Training (Travel and Living Expenses) | $35,000 to $45,000 |
| Miscellaneous Opening Costs | $20,000 to $60,000 |
| Additional Funds | $25,000 to $40,000 |
| Total Estimated Initial Investment* | $1,330,000 to $2,079,000 |
Average Revenue (AUV)
How much revenue can you make with a Taco John’s franchise? A Taco John’s franchised restaurant makes on average $1,137,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,137,000 yearly revenue for similar Mexican franchises. Below are 10 Taco John’s competitors as a comparison:
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Taco John’s Franchise Disclosure Document
Frequently Asked Questions
How many Taco John’s locations are there?
As of the latest data, Taco John’s operates 364 locations in the U.S. Of these, 357 are franchise-owned, and 7 are company-owned. The brand continues to grow, with several additional locations in development.
What is the total investment required to open a Taco John’s franchise?
The total investment required to open a Taco John’s franchise ranges from $770,000 to $2,079,000.
What are the ongoing fees for a Taco John’s franchise?
For a Taco John’s franchise, the ongoing fees include a royalty fee of 5% of gross sales. Additionally, franchisees are required to contribute to the brand’s marketing efforts through an advertising fee, which ranges from 2% to 4% of gross sales.
These fees help support both the national advertising campaigns and regional marketing efforts to boost the franchise’s visibility and customer engagement.
What are the financial requirements to become a Taco John’s franchisee?
To become a Taco John’s franchisee, you need a minimum net worth of $1 million and at least $500,000 in liquid capital. These financial requirements ensure franchisees have the resources necessary to start and sustain the business.
How much can a Taco John’s franchise owner expect to earn?
The average gross sales for a Taco John’s franchise are approximately $1.14 million per location. Assuming a 15% operating profit margin, $1.14 million yearly revenue can result in $171,100 EBITDA annually.
Who owns Taco John’s?
Taco John’s is owned by Taco John’s International, Inc., a privately held company based in Cheyenne, Wyoming. The company was founded in 1969 and has grown into a prominent quick-service Mexican restaurant chain. While the company remains privately owned, it operates through a combination of company-owned and franchised locations.
Disclaimer
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