Frequently Asked Questions
The following questions are some of the most commonly asked questions by prospective franchisees. If you have additional questions, fill out a form to download our free franchise information report and start a conversation or give us a call at 855-838-4666.
What is an FDD?
FDD is an acronym for Franchise Disclosure Document. It is a federally mandated prospectus that provides detailed information about a franchise opportunity. All franchisors, such as Taco John’s® , are required to maintain a valid FDD. Each individual state also requires that the FDD be filed on an annual basis. It provides the framework for the relationship between Taco John’s® and you, the franchisee. We will provide you with a copy of the FDD during the evaluation process for the Taco John’s® franchise opportunity.
What are the key steps for becoming a Taco John’s ® franchisee?
- Fill out a form on this site to let us know about you, then speak with our Franchise Development Team to learn more about the opportunity.
- Submit a completed Application, including the requested documentation, to the Taco John’s® Support Center.
- Once your Application is approved, a member of our Franchise Development Team will visit with you in your market area.
- You will be invited to attend a Discovery Day at the Taco John’s Franchise Support Center in Cheyenne, WY. There you will have a chance to tour our corporate locations and meet with our senior leadership team.
- We will mutually determine the trade areas you wish to develop and we will agree upon a development schedule.
- The proposed Territory Reservation Agreement (TRA), Area Development Agreement (ADA) or Franchise Agreement (FA) will be submitted to the Taco John’s® Leadership Team for approval.
- Once the executed TRA, ADA or FA and the requisite franchise fees are received, you will start to receive the real estate, construction, and operations support to help you develop your location.
What are the financial requirements?
In order to qualify for a single Taco John’s® location, you or your partnership must have $350,000 in documented liquid assets and a net worth in excess of $500,000. We will consider single and multi-unit commitments. In order to qualify for 2-4 units, you must have $500,000 in documented liquid assets and a net worth in excess of $1,000,000. For development commitments of 5 units or greater; the financial requirements will vary based on the proposed size and scope of the ADA. In each circumstance, it is common for individuals to combine their resources and create partnerships to meet the financial qualifications.
How much money can I make?
Based upon Federal Trade Commission guidelines, we are precluded from providing earnings estimates or profit potential. We encourage prospective franchisees to conduct significant due diligence prior to committing to a new business venture. Existing Taco John’s® franchisees are an excellent source to answer questions. We provide a full list of our existing operators, as well as sales/operating cost information in our FDD.
What is my total estimated initial investment?
We offer a few different development options and the costs can vary based on venue, development type, geography, etc. We provide investment ranges in the FDD.
Does Taco John’s® offer financing?
We do not provide direct financing, but we have established relationships with third party lenders that will assist you in obtaining financing.
What type of experience do I need to run a Taco John’s® Restaurant?
Knowledge of food service is very helpful, but not required. Prior experience in business management is a key criterion. We can teach you the Taco John’s® way to manage a food business, but important traits for a franchisee include: organizational skills, people skills, work ethic, enthusiasm, and adherence to the systems, standards and specifications of Taco John’s® .
Where is Taco John’s® pursuing franchise development?
We have prime territories available throughout many parts of the United States. Target areas include Kentucky, Tennessee, Indiana, Ohio, Minnesota, Wisconsin, Michigan, Kansas and Missouri among others. We have, however, designated certain areas where we may only consider a multi-unit agreement. This franchise offer is not available to residents of Hawaii, Maryland, or Rhode Island. The Franchise Development Team can provide further detail on areas in our current strategy.
Is Taco John’s® developing internationally?
No. We are concentrating our efforts on domestic U.S. development.
Can I open a Taco John’s® inside or adjoining a convenience store or travel plaza?
Does Taco John’s® require a drive thru?
We operate in the fast food category and a significant portion of our business is served through our drive-thru window. A drive-thru window is required in almost every circumstance.
Can I open a Taco John’s® inside a mall, airport, or college and university food court?
Yes. Of course, a drive-thru window is not required in these venues.
How long does it take to open a Taco John’s® restaurant?
From the date the Franchise Agreement is signed, it takes approximately six to twelve months. But that is subject to venue type, availability of land, local permits and licenses, weather and other factors.
How much is the Franchise Fee?
The Franchise Fee for your first location is $25,000 and each subsequent location is $20,000.
How much is the monthly Royalty Fee?
The monthly Royalty Fee is five percent (5%) for traditional restaurants and seven percent (7%) for non-traditional restaurants of Net Sales. Net Sales are the total receipts from all sales of the restaurant, excluding sales tax.
What is the monthly Advertising & Marketing Fee?
Currently, a minimum of four percent (4%) of Net Sales is required for the Advertising Media Fund. The fee for Non-traditional Restaurants is two percent (2%) of Net Sales. Net Sales are the total receipts from all sales of the restaurant, excluding sales tax.
How do I find a location?
We share mapping, demographics and competitive sales data with our franchisees. A franchise development representative will meet with you and tour your area to provide guidance on our site criteria. Once a site is identified, you will complete a formal Site Package for senior management review.
How do I build my restaurant?
We provide our prototype construction plans in CAD format. One of our Directors’ of Construction will assist with site layouts and they will complete a pre-construction orientation, a construction in progress site visit and a final punch list for each new restaurant.
What are the training requirements for Taco John’s® ?
We prefer that our franchisees are actively involved in their business, but you may designate employees to complete the training program. We require that at least three people complete our four week management training program. In many cases, the training will take place at our Cheyenne Franchise Support Center and at one of our certified training restaurants. We may offer training in one of our regionally based franchisee certified training restaurants. There is no additional fee for the training program, however the franchisee is responsible for travel, lodging and miscellaneous expenses for the trainees.
What kind of operational support will I receive?
As a new franchisee, you will be assigned a New Store Opening Manager as your key contact for the pre-opening support, including training, and the initial few months your restaurant is open. We recognize the unique requirements of a new franchisee, so we created this position. Once you have been open for a few months, they will transition you over to your regionally based Franchise Business Consultant (FBC). They are your one-stop resource for all operational support. At least three operations team members will be on-site for your grand opening to provide training and resources during this critical period.