Rusty Taco Franchise FDD, Profits & Costs (2025)

Rusty Taco was established in 2010 by Rusty Fenton and his wife, Denise, in Dallas, Texas, with the vision of creating an authentic taco stand experience. The concept was inspired by Rusty’s unforgettable encounter with a fresh fish taco in Acapulco, which sparked his passion for bringing those bold, genuine flavors to his local community.

The franchise differentiates itself through its dedication to authenticity, high-quality ingredients, and a simple yet flavorful menu that embodies the essence of Mexican street food. Offering a selection of classic tacos alongside refreshing drinks like margaritas and beer, Rusty Taco embraces the philosophy that “Tacos are the most important meal of the day.”

After briefly operating as R Taco, the brand reinstated its original name, “Rusty Taco,” in 2018. This decision reaffirmed its core values and paid tribute to Rusty Fenton’s legacy, reflecting his lifelong mission to share authentic tacos with a broader audience.

The rebranding was celebrated at the original Dallas location, reinforcing the franchise’s deep community roots. Now part of Inspire Brands, Rusty Taco continues to expand while maintaining the same character and commitment to quality that have been integral to its identity since its founding.

Initial Investment

How much does it cost to start a Rusty Taco franchise? It costs on average between $532,000 – $1,100,000 to start a Rusty Taco franchised restaurant.

This covers expenses related to construction, kitchen equipment, inventory, and initial operational costs. The total investment varies based on several factors, such as the restaurant’s location, the chosen property type, and whether the franchisee opts to lease or buy the space.

Type of ExpenditureAmount
Initial Franchise Fee$25,000
Rent and Security Deposit$3,000 to $10,000
Utility Deposits$6,000 to $10,000
Construction, Remodeling, and Leasehold Improvements$253,000 to $610,000
Permits and Licenses$3,000 to $6,950
Architect Fee$15,000 to $25,000
Restaurant Design Consulting Services$500 to $1,500
Furniture, Fixtures, Equipment, and Signage$163,000 to $250,000
Initial & Opening Training Costs$0 to $12,000
Computer Hardware and Software$15,000 to $30,000
Initial Inventory/Supplies$7,400 to $10,000
Professional Services$5,000 to $15,000
Initial Advertising and Marketing Expenses$10,000 to $15,000
Insurance$6,000 to $30,000
Additional Funds (3 months)$20,000 to $50,000
TOTAL$531,900 to $1,100,450

Average Revenue (AUV)

How much revenue can you make with a Rusty Taco franchise? A Rusty Taco franchised restaurant makes on average $1,079,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

Rusty Taco fdd item 19 extract

This compares to $1,200,000 yearly revenue for similar Mexican franchises. Below are a few Rusty Taco competitors as a comparison:

Rusty Taco competitors

Rusty Taco Franchise Disclosure Document

Frequently Asked Questions

How many Rusty Taco locations are there?

As of the latest available data, Rusty Taco operates over 30 locations across 12 states in the United States. The specific breakdown between company-owned and franchise-owned locations is not publicly disclosed.

What is the total investment required to open a Rusty Taco franchise?

The total investment required to open a Rusty Taco franchise ranges from $532,000 to $1,100,000.

What are the ongoing fees for a Rusty Taco franchise?

As a Rusty Taco franchisee, you are obligated to pay an ongoing royalty fee of 5% of your gross sales. Additionally, there is an advertising fee ranging from 1% to 3% of gross sales, which contributes to both national and local marketing efforts. These fees support the continuous development and promotion of the Rusty Taco brand, providing franchisees with marketing resources and brand recognition.

What are the financial requirements to become a Rusty Taco franchisee?

To qualify as a Rusty Taco franchisee, candidates should possess a minimum net worth of $1,000,000 and at least $500,000 in liquid assets. Additionally, prospective franchisees are expected to have substantial experience in multi-unit restaurant operations and a demonstrated passion for the restaurant industry.

How much can a Rusty Taco franchise owner expect to earn?

The average gross sales for a Rusty Taco franchise are approximately $1.08 million per location. Assuming a 15% operating profit margin, $1.08 million yearly revenue can result in $162,000 EBITDA annually.

Who owns Rusty Taco?

Rusty Taco is currently owned by Gala Capital Partners, a private investment firm that acquired the chain from Inspire Brands in December 2022. Gala Capital Partners focuses on emerging restaurant franchise brands and also owns Cicis Pizza, Dunn Brothers Coffee, and MOOYAH Burgers, Fries & Shakes.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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