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TacoTime Franchise Costs $145K – $763K (2024 Fees & Profits)

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

Type of ExpenditureAmount
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
* for a Traditional TacoTime Restaurant

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

The initial franchise fee varies based on the type of restaurant and whether it is the franchisee’s first location. For the first traditional TacoTime restaurant, the fee is $30,000, decreasing to $17,500 for subsequent traditional locations. For non-traditional locations, the fee is $7,500 initially and reduces to $5,000 for additional locations. Discounts are available for military members and certain nonprofit organizations.

Royalty Fee

Franchisees must pay a weekly Royalty Fee, which is the greater of 6% of total weekly Gross Sales or $400. Additionally, a Surcharge of up to $10 per week may be applied depending on the state requirements.

Advertising Fees

Franchisees are required to contribute up to 4% of weekly Gross Sales towards Advertising Fees. Depending on the location, 1% is allocated to the National Fund, and 3% to either the Regional Fund or a store-specific fund.

Additional Persons Training Fee

The fee for additional persons attending the Training Program is $1,250 per person. This includes $500 for the In-Store Training portion and $750 for the New Owner Training portion.

Late Report Fee

A fee of $100 per week is charged for late submission of required reports or payments.

Annual Meeting Registration Fee

Franchisees may be charged up to $1,000 for registration fees related to the annual meeting, plus incidental costs to attend.

Lease Review Fee

If franchisees request a lease review, a Lease Review Fee of up to $2,500 is payable. This fee is non-refundable and optional.

Find the most profitable franchises

Access the (only) database of franchise profit stats. For franchisees, franchise brokers and investors.

✅ Download Franchise Disclosure Documents

✅ Compare turnover, investment, profits and more

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How to apply

1. Research the Franchise

  • Investigate the history and reputation of TacoTime to understand its market presence and performance.
  • Evaluate customer reviews and feedback to gauge consumer satisfaction and brand loyalty.

2. Review the Franchise Disclosure Document (FDD)

  • Thoroughly read the FDD provided by TacoTime, which includes detailed information about the franchise, fees, legal issues, and obligations.
  • Consider consulting with a franchise attorney to better understand the terms and conditions.

3. Assess Your Financial Requirements

  • Determine the initial investment needed, including franchise fees, equipment, and location setup costs.
  • Analyze your financial capacity to ensure you can cover the upfront costs and ongoing expenses until the franchise becomes profitable.

4. Secure Financing

  • Explore different financing options such as loans, investors, or personal savings to fund the franchise purchase and initial operations.
  • Prepare a solid business plan to present to potential lenders or investors, outlining projected returns and business strategy.

5. Find a Suitable Location

  • Identify a strategic location that aligns with TacoTime’s brand visibility and accessibility requirements.
  • Evaluate factors like foot traffic, local competition, and demographic compatibility to ensure the location supports the franchise’s potential for success.

6. Complete Training Programs

  • Participate in TacoTime’s training programs to understand their operational procedures, menu offerings, and customer service standards.
  • Use the training period to ask questions and learn from experienced franchisees or trainers.

7. Finalize the Franchise Agreement and Start the Setup Process

  • Review and sign the franchise agreement with TacoTime to officially become a franchisee.
  • Begin the process of setting up your franchise, including interior design, equipment installation, and hiring staff according to the company’s guidelines.

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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