TacoTime Franchise FDD, Profits, Costs & Fees (2024)
TacoTime is a Mexican fast-food franchise established in 1960 by Ron Fraedrick in Eugene, Oregon.
Inspired by the flavors of Southern California Mexican cuisine, Fraedrick opened his first restaurant near the University of Oregon, aiming to provide a unique fast-food experience with a focus on fresh ingredients.
The franchise began expanding in 1962, opening its first franchised location in Tacoma, Washington. This move marked the beginning of significant growth, leading to various TacoTime restaurants across the U.S. and Canada.
The appeal of TacoTime’s distinctive taste and quality food helped it rapidly attract franchisees.
In addition, TacoTime differentiates itself in the crowded fast-food market through its commitment to original recipes and high-quality, fresh ingredients. This dedication ensures a consistent and enjoyable eating experience, creating strong customer loyalty and setting TacoTime apart from its competitors.
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Initial Investment
How much does it cost to start a TacoTime franchise? It costs on average between $145,000 – $763,000 to start a TacoTime 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. TacoTime offers 2 types of franchises:
| Franchise Type | Initial Investment Range |
|---|---|
| Traditional Franchise Unit | $331,150 to $762,800 |
| Non-Traditional Franchise Unit | $144,650 to $508,300 |
We are summarizing below the main costs associated with opening a TacoTime Traditional Franchise Unit. For more information on costs required to start a TacoTime franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $14,000 – $30,000 |
| Lease Review Fee | $0 – $2,500 |
| Rent/Security Deposit (for 3 months) | $6,000 – $20,000 |
| Travel and Living Expenses (2 persons) while training | $3,000 – $7,500 |
| Architectural Fees | $7,000 – $17,000 |
| Leasehold Improvements | $170,000 – $380,500 |
| Restaurant Equipment, Furniture, Small Wares, Interior Signage and Menu Panels | $88,000 – $185,000 |
| Exterior Signage | $7,000 – $30,000 |
| Computer Hardware, Software (POS System) | $3,000 – $15,000 |
| PCI Compliance Costs | $150 – $1,300 |
| Opening Inventory (food and paper) | $4,000 – $10,000 |
| Business Insurance | $3,000 – $12,000 |
| Miscellaneous Opening Costs | $8,000 – $19,000 |
| Grand Opening Marketing | $10,000 – $10,000 |
| Depository Account | $3,000 – $3,000 |
| Additional Funds – 3 month initial period | $5,000 – $20,000 |
| Total Estimated Initial Investment* | $331,150 – $762,800 |
Average Revenue (AUV)
How much revenue can you make with a TacoTime franchise? A TacoTime franchised restaurant makes on average $823,000 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 TacoTime competitors as a comparison:
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TacoTime Franchise Disclosure Document
Frequently Asked Questions
How many TacoTime locations are there?
As of the latest data, TacoTime operates approximately 300 locations across the United States and Canada. This network includes both company-owned and franchise-owned locations.
TacoTime’s U.S. presence spans over 10 states, with significant clusters in regions such as Utah, Oregon, and Washington, where local demand for quick-service Mexican food remains strong.
What is the total investment required to open a TacoTime franchise?
The total investment required to open a TacoTime franchise ranges from $145,000 to $763,000.
What are the ongoing fees for a TacoTime franchise?
For TacoTime franchisees, the ongoing fees include a 6% royalty fee and a 2% marketing fee, both calculated from gross sales. The royalty fee grants franchisees access to TacoTime’s operational resources, while the marketing fee supports national advertising to boost brand visibility and customer engagement.
What are the financial requirements to become a TacoTime franchisee?
To become a TacoTime franchisee, you must have a minimum net worth of $500,000 and liquid capital of at least $100,000. These requirements ensure that potential franchisees have the financial stability to support the initial investment and operational costs associated with starting and running a TacoTime franchise.
How much can a TacoTime franchise owner expect to earn?
The average gross sales for a TacoTime franchise are approximately $0.82 million per location. Assuming a 15% operating profit margin, $0.82 million yearly revenue can result in $123,000 EBITDA annually.
Who owns TacoTime?
TacoTime is primarily owned by Kahala Brands, which acquired the chain in 2003. Kahala Brands, part of MTY Food Group, manages numerous quick-service restaurant brands, including TacoTime locations across most U.S. states and international markets. However, TacoTime Northwest—a separate entity—owns and operates TacoTime restaurants exclusively in Western Washington.
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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