About KARG Franchise
Sombrero Tacoria is a Mexican restaurant franchise operated by KARG Franchise Systems LLC that delivers fresh, flavorful tacos and traditional Mexican fare in a vibrant, casual dining setting.
The brand brings an energetic atmosphere and bold menu offerings to the popular Mexican food segment, catering to customers who crave authentic flavors and generous portions.
With a franchise fee of $35,000, Sombrero Tacoria provides a mid range investment opportunity in the Mexican fast casual restaurant space.
KARG Franchise Cost & Fees
Minimum Investment
$408K
Average Investment
$544K
Maximum Investment
$680K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of monthly Gross Sales, currently not assessed | National brand fund |
| Total Investment Range | $407,910 – $680,433 | Includes build-out, inventory, working capital |
The investment range of $408K–$680K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (Up to 2% of monthly Gross Sales, currently not assessed) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Note 1) | $35,000 | $35,000 |
| Construction and Leasehold Improvements (Note 2) | $110,000 | $215,000 |
| Lease Deposits and Rent – Three Months (Note 3) | $9,321 | $24,273 |
| Furniture and Fixtures (Note 4) | $16,500 | $30,000 |
| Equipment (Note 5) | $112,500 | $167,600 |
| Signage (Note 6) | $3,500 | $10,000 |
| Computer, Software, and Point of Sale System (Note 7) | $8,570 | $18,100 |
| Grand Opening Marketing (Note 8) | $5,000 | $15,000 |
| Initial Inventory (Note 9) | $9,000 | $13,000 |
| Utility Deposits (Note 10) | $1,580 | $1,896 |
| Insurance Deposits – Three Months (Note 11) | $92 | $330 |
| Travel for Initial Training (Note 12) | $2,000 | $5,200 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 5% of amount or $50, whichever is greater, or maximum fee allowed by law |
| Renewal Fee | 25% of the then current initial franchise fee |
| Technology Fee | $750 |
| Audit Fee | For costs incurred by us for each financial audit, provided the audit determines |
| Brand Development Fund (Note 4) | Up to 2% of Gross Sales, currently 1% of Gross Sales |
| Franchisee Directed Local Marketing (Note 5) | 1.5% of Gross Sales |
| POS System (Note 6) | $70 |
| Additional Employee Initial Training | $500 |
| Supplemental On-Site Training | $500 |
| Interest | 18% per annum from due date |
| Reporting Non-Compliance | $150 |
| Operations Non-Compliance | $450 |
| Payment Non-Compliance | $150 |
| Management Service | 20% of Gross Sales, plus expenses |
| Operations Manual Replacement Fee | $500 |
| Construction and Leasehold Improvements (Note 2) | $110,000 |
| Lease Deposits and Rent – Three Months (Note 3) | $9,321 |
| Furniture and Fixtures (Note 4) | $16,500 |
| Equipment (Note 5) | $112,500 |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Renewal Term | If you meet our conditions for renewal you may renew your franchise for one additional 10 year term. |
| Termination for Cause | We can terminate if you are in default of the terms of the Franchise Agreement. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Does not offer financing. |
KARG Franchise Earnings — Item 19
KARG does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
KARG does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
KARG Litigation & Risk Flags
Clean Litigation RecordKARG has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
KARG System Growth
Total Units
1
Franchised
0
Company-Owned
1
KARG currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | ||
| 2020 | 2 | ||
| 2021 | 0 | ||
| 2021 | 3 | ||
| 2022 | 0 | ||
| 2022 | 4 |
KARG Franchise — FAQ
The total investment to open a KARG franchise ranges from $407,910 to $680,433, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
KARG charges a royalty fee of 5% of Gross Sales of gross sales, plus a Up to 2% of monthly
Gross Sales, currently
not assessed contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the KARG Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from KARG to ensure you have the most up-to-date version.
KARG does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
KARG has been offering franchise opportunities. The FDD shows an investment range of $407,910-$680,433, a 5% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 and the total investment ranges from $407,910 to $680,433 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Food & Beverage Franchises
Interested in KARG?
Get free info on this franchise. We will send you a detailed FDD report by email.
Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from KARG and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with KARG or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com