Taco Casa Franchise FDD, Profits, Costs & Fees (2024)

Taco Casa is a Tex-Mex fast-food franchise founded in 1972 by Rod Wilkin in Tuscaloosa, Alabama. The idea was born from Wilkin’s desire to bring quality Mexican cuisine to the area, inspired by his experiences with Tex-Mex food during his college years.

Today, Taco Casa remains headquartered in Tuscaloosa, offering a menu that includes classic items such as tacos, burritos, nachos, tostadas, and the signature Chili Burger, featuring seasoned beef, red sauce, and lettuce on a bun.

The franchise began expanding soon after its founding and currently operates over 90 locations in the United States, all owned by franchisees.

Taco Casa differentiates itself from competitors by adhering to its original recipes and focusing on high-quality, freshly prepared ingredients, which has helped fuel its consistent growth. The franchise remains open to expansion opportunities, actively franchising in the U.S. and seeking entrepreneurs to join its network.

Initial Investment

How much does it cost to start a Taco Casa franchise? It costs on average between $615,000 – $ 2,127,000 to start a Taco Casa franchised restaurant.

This range covers various expenses such as equipment, build-out costs, and initial inventory. The franchise fee is $35,000, which grants the rights to use the Taco Casa brand and business model.

Average Revenue (AUV)

How much revenue can you make with a Taco Casa franchise? A Taco Casa franchised restaurant makes on average $700,000 to over $1 million in revenue (AUV) per year.

Factors influencing revenue include the quality of the location, marketing efforts, and management’s ability to control costs and maximize sales.

This compares to $1,137,000 yearly revenue for similar Mexican-style restaurant franchises. Below are 10 Taco Casa competitors as a comparison:

Taco Casa competitors

Recent Legal Disputes and Litigation

Recent legal disputes with the Taco Casa franchise center on transparency issues. In 2021, franchisee Lacado, LLC, led by Andrew Wilson, filed a lawsuit against R&S Upshaw Franchising.

The lawsuit claimed that Roy Upshaw, the founder, misrepresented ownership of the Taco Casa trademark. Wilson discovered the trademark was registered to a third party, not as stated in the Federal Disclosure Document (FDD).

The case also alleged that the franchisor failed to disclose vendor rebate arrangements, violating federal rules. These rebates were intended to support franchisees, such as through advertising, but details were missing in the franchise agreement.

Such disputes highlight ongoing challenges in trademark transparency and compliance with disclosure laws, potentially leading to strained franchise relationships and legal issues. Proper adherence to franchise regulations is essential to avoid litigation and maintain trust.

Frequently Asked Questions

How many Taco Casa locations are there?

As of the latest data, Taco Casa operates over 90 locations in the United States, with all of them being franchise-owned. There are no company-owned locations, indicating that the brand relies entirely on its franchise model for expansion.

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

The total investment required to open a Taco Casa franchise ranges from $615,000 to $2,127,000.

What are the ongoing fees for a Taco Casa franchise?

For a Taco Casa franchise, ongoing fees include a royalty fee of 7% of gross sales, which is paid to the franchisor for continued use of the brand and support services.

Additionally, franchisees are typically expected to contribute to marketing and advertising, although specific marketing fees are not consistently disclosed in available sources.

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

To qualify as a Taco Casa franchisee, candidates need a minimum net worth of $1,000,000. Additionally, they must have at least $400,000 in liquid capital.

These financial requirements ensure that potential franchisees have sufficient resources to cover the initial investment and ongoing operational costs, helping to maintain the brand’s standards and support growth.

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

The average gross sales for a Taco Casa franchise are approximately $0.7 million per location. Assuming a 15% operating profit margin, $0.7 million yearly revenue can result in $105,000 EBITDA annually.

Who owns Taco Casa?

Taco Casa is privately owned by the Upshaw family, with Roy Upshaw being a key figure in the company’s history. Roy Upshaw founded the franchise in 1972, and the business has remained family-operated ever since.

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.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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