About Taco Pros Franchise
Taco Pros is a Mexican restaurant franchise serving a full menu of tacos, burritos, tortas, rice, and both vegetarian and non vegetarian Mexican dishes along with beverages and related food products.
Franchising since 2022, the brand operates restaurants with dining facilities and delivery service, targeting the general public with authentic, flavorful Mexican cuisine.
The initial franchise fee is $35,000.
Taco Pros Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of Gross Sales | National brand fund |
| Total Investment Range | $456,500 – $583,600 | Includes build-out, inventory, working capital |
The investment range of $457K–$584K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (3% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchisee Fee | $35,000 | $35,000 |
| Location Assistance Fee | $0 | $300 |
| Construction Assistance Fee | $0 | $300 |
| Rent | $5,000 | $8,000 |
| Security Deposits | $5,000 | $10,000 |
| Leasehold Improvements | $200,000 | $250,000 |
| Equipment, Furniture and Fixtures | $150,000 | $200,000 |
| Insurance | $3,000 | $5,000 |
| Permits and Licenses | $2,000 | $5,000 |
| Initial Inventory | $10,000 | $20,000 |
| Signage | $5,000 | $8,000 |
| Grand Opening Advertising | $10,000 | $10,000 |
| Architecture | $5,000 | $10,000 |
| Travel Expenses for Training | $5,000 | $10,000 |
| Professional Fees | $1,500 | $4,000 |
| Opening Assistance | $0 | $3,000 |
| Liquor Licensing | $0 | $10,000 |
| Additional Funds (3 months) | $20,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $20,000 |
| Renewal Fee | 50% of our then-current initial franchise fee ($17,500) |
| Technology Fee | $4,800 per year or $400 per month (for POS System Maintenance and Support) |
| Audit Fee | Cost of audit |
| Interest | 1.5% per month or the highest rate allowed by applicable law, whichever is less. |
| Prohibited Product or Service Fee | $250 per day of use of unauthorized products or services. |
| Inspection and Testing of a Product or Service | $700 per product or service. |
| Liquidated Damages | Actual costs. |
| Costs and Attorneys’ Fees | Actual costs. |
| Indemnification | Actual costs. |
| Repair, Maintenance, and Remodeling/Redecorating | Will vary under circumstances. No contractual limit on the amount you may need to spend. |
| Insurance | Reimbursement of our costs |
| Online Ordering | $150 to $250 per month, per restaurant. |
| Audio services, Internet services | $150-$200 per month. |
| Financial Reporting Non-Compliance Fee | $500 per month. |
| Insufficient Funds (NSF) service charge | $50 service charge |
| Reimbursement for Monies Paid by Us on Your Behalf | Actual costs. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 4 weeks |
| Classroom Training | 31 hours |
| On-the-Job Training | 230 hours |
| Training Location | Chicago, Illinois |
| Additional Training | The franchisor may offer additional training programs, seminars, and annual meetings, which may be mandatory for franchisees and/or their General Managers. Franchisees are responsible for their trainees' expenses (travel, lodging, meals, wages) for initial and additional training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Territory |
| Exclusive Territory | No |
| Territory Size | Typically a maximum of a 1-mile radius in suburban areas or a 2-block radius in densely populated metropolitan/urban areas. |
| Description | The Franchise Agreement specifies an accepted location for the restaurant. If not a Non-Traditional site, a Protected Territory is assigned around the restaurant. The size varies based on location type (metropolitan, urban, suburban). No Protected Territory is granted for Non-Traditional Sites (e.g., mall food courts, airports). The franchisor reserves rights to operate or grant franchises outside the Protected Territory and at Non-Traditional Sites, and to compete through other channels of distribution. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two additional 5-year terms |
| Renewal Fee | 50% of our then-current initial franchise fee ($17,500) |
| Renewal Conditions | Timely notice of desire to renew (9-12 months prior to term end), substantial compliance with agreements, full payment of monetary obligations, submission of financial reports and a business plan, execution of current Franchise Agreement and ancillary documents (which may differ materially and be less advantageous), and completion of required updating, remodeling, or redecorating of the restaurant to current standards within 6 months of notice. |
| Transfer Fee | $20,000 |
| Transfer Conditions | All monetary and other outstanding obligations to the franchisor and affiliates must be satisfied. No defaults under any agreements. Transferee must meet franchisor's criteria (educational, managerial, business standards, character, credit rating, financial resources). Transferee must execute a written agreement assuming full liability or sign the then-current standard form franchise agreement. Transferee must renovate/upgrade the restaurant to current standards. Transferor remains liable for pre-transfer obligations. Transferee's general manager and personnel must complete training. A transfer fee of $20,000 is required. Transferee must provide evidence of satisfying Section 6 representations. |
| Termination for Cause | Automatic termination without cure period for events such as insolvency, bankruptcy, dissolution, levy of execution, foreclosure, unapproved site operation, failure to construct/remodel, abandonment, felony conviction, public health/safety threat, unauthorized transfer, non-compliance with in-term non-compete, disclosure of confidential information, false records, misuse of Marks, or General Manager candidate failure. Termination with a 14-day cure period for failure to comply with agreement requirements, standards, or procedures; failure to obtain prior approvals; failure to acquire an Approved Location or open on time; or failure to pay monies or submit financial information (5-day cure period). Three events of default within 12 months also lead to termination. |
| Non-Compete Period | During the term of the Franchise and for 2 years after expiration or termination. |
| Non-Compete Details | During the term, franchisees and owners are prohibited from diverting business, operating, or having a financial interest in any 'Competitive Business' (fast-food or quick-service Mexican/Mexican-style food products) anywhere. After termination/expiration, the same restrictions apply within a 25-mile radius of any Taco Pros Restaurant in the System. Ownership of less than 5% beneficial interest in publicly traded corporations is exempt. Employees are also subject to non-compete covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The operation of a Taco Pros Restaurant requires the full-time attention of a well-trained Operator. If the franchisee is not the Operator, an Operator must be designated prior to signing the Franchise Agreement. The Operator must be located near the restaurant and have at least 2 years of restaurant experience, including 1 year as a general manager. A General Manager, who may be an Owner or Operator, must be designated to devote full-time efforts to supervising and managing the restaurant and must meet franchisor-approved qualifications and training requirements. |
| Required Suppliers | Franchisees must purchase or lease and install all furnishings, fixtures, equipment (including POS system and computer hardware and software), décor items, lighting systems, audio and video systems, signs and related items, all of which must conform to franchisor standards. Specific contractors, vendors, and suppliers for food and beverage, paper goods, uniforms, social media, store branding, gift cards, online ordering, and music/store layout are designated by the franchisor. |
| Supply Restrictions | Franchisees must operate in strict conformity with franchisor's methods, standards, and specifications, including using only approved food and beverage items, ingredients, products, materials, supplies, and paper goods. Proprietary recipes and products must be purchased solely from the franchisor or designated sources. Franchisor reserves the right to restrict suppliers to itself, its affiliates, or third parties it designates. Purchases from unapproved suppliers require written approval and may incur a $700 fee per product for testing. |
| Franchisor Revenue from Suppliers | In the fiscal year ended December 31, 2021, the franchisor derived $0 (0%) of its total gross revenues from required purchases and leases. However, the franchisor and its affiliates may receive payments or other compensation (rebates, commissions) from approved suppliers in the future, which they may use for any purpose deemed appropriate. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer, either directly or indirectly, any financing arrangements to franchisees and does not guarantee franchisee notes, leases, or other obligations. |
Taco Pros Franchise Earnings — Item 19
Taco Pros 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.
Taco Pros Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Taco Pros System Growth
Taco Pros currently operates 1 franchised locations and 6 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 2 | 0 | 3 |
| 2021 | 1 | 0 | 4 |
| 2022 | 3 | 0 | 7 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, OR, RI, ND, SC, SD, VA, WA, WI
Taco Pros Franchise — FAQ
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