What Are the Startup Costs and Fees?

A look at the Taco John’s startup cost

Those interested in starting a Taco John’s franchise will need liquid assets of at least $350,000 and a net worth of at least $500,000. The Taco John’s startup cost for individual restaurants varies significantly based on location and floor plan. Taco John’s offers four floor plans to help investors take advantage of a variety of locations, including traditional freestanding drive-thru locations, end-cap with drive-thru, travel plaza locations, and non-traditional real estate opportunities.

Nearly all locations call for drive-thru. That’s because drive-thru sales account for over 60% of sales nationwide.

learn about Taco John's franchise cost

Our initial franchise fee for traditional locations is $25,000 for the first restaurant and $20,000 for subsequent locations. For non-traditional locations such as malls, airports or college campuses, the initial franchise fee is $10,000. Taco John’s royalty fee is 5% of net sales for standalone and end-cap locations, and 7% of net sales for non-traditional locations.

Financing a Taco John’s is relatively simple. Franchisees are free to use their choice of lenders, plus we have established relationships with national lenders Directed Equity and Wells Fargo.

Here’s a look at the Taco John’s franchise costs:

Signature T16 Restaurant

The Signature T16 restaurant buildings are 1,900 to 2,100 square feet with seating for 40-56. They require a lot between 22,000 and 30,000 square feet and may park 20-30 vehicles. The following chart describes your estimated initial investment to establish a Signature T16 restaurant building.

ExpendituresLow-High RangeMethod of PaymentWhen PayableTo Whom Paid
TOTAL ESTIMATED INITIAL INVESTMENT (without real estate costs) (14)$942,000 to $1,381,000
Initial Franchise Fee (1)$20,000 to $25,000CashIn full on signing the Franchise AgreementUs
Real Estate Purchase or Lease (2)See Note 2As arrangedAs arrangedSeller or landlord
Site Preparation and Completion Costs (3)$135,000 to $300,000As arrangedAs scheduledContractors
Construction Costs (4)$480,000 to $600,000As arrangedAs scheduledContractors
Operating Equipment (5)$130,000 to $150,000As arrangedAs arrangedSuppliers
Furniture, Fixtures and Décor (6)$20,000 to $45,000As arrangedAs arrangedSuppliers
Signage and Installation (7)$28,000 to $42,000As arrangedAs arrangedManufacturers and installers
Point of Sale System (8)$32,000 to $45,000As arrangedAs arrangedSuppliers
Initial Inventory (9)$15,000 to $22,000As arrangedAs arrangedSuppliers
Grand Opening Marketing (10)$5,000 to $12,000As incurredAs arrangedSuppliers
Pre-Opening Training (Travel and Living Expenses) (11)$32,000 to $45,000As incurredBefore OpeningSuppliers
Miscellaneous Opening Costs (12)$20,000 to $60,000As incurredAs arrangedGovernmental authorities, providers, and other third parties
Additional Funds (13)$25,000 to $35,000As incurredAs arrangedVarious suppliers and providers

Notes for this table can be found here.

Non-traditional Restaurant

Taco John’s also offers development options for non-traditional locations such as airports, malls, military bases, and college/university food courts. It typically requires 675 to 2,000 square feet with seating for 0 to 50. The following chart describes your estimated initial investment to establish a non-traditional restaurant building.

ExpendituresLow-High RangeMethod of PaymentWhen PayableTo Whom Paid
TOTAL ESTIMATED INITIAL INVESTMENT (without real estate costs) (13)$321,000 to $635,000
Initial Franchise Fee (1) $10,000CashIn full upon signing the Franchise Agreement Us
Real Estate Lease (2) (See Note 2)As arrangedAs arrangedSeller or landlord
Leasehold Improvements (3)$60,000 to $250,000As arrangedAs scheduledContractors
Operating Equipment (4)$115,000 to $135,000As arrangedAs arrangedSuppliers
Furniture, Fixtures and Décor (5)$20,000 to $30,000As arrangedAs arrangedSuppliers
Signage and Installation (6)$5,000 to $10,000As arrangedAs arrangedManufacturers and installers
Point of Sale System (7)$14,000 to $26,000As arrangedAs arrangedSuppliers
Initial Inventory (8)$15,000 to $22,000As arrangedAs arrangedSuppliers
Grand Opening Marketing (9)$5,000 to $12,000As incurredSet asideSuppliers
Pre-Opening Training (Travel and Living Expenses) (10)$32,000 to $45,000As incurredBefore OpeningSuppliers
Miscellaneous Opening Costs (11)$20,000 to $60,000As incurredAs arrangedGovernmental authorities, providers, and other third parties
Additional Funds (12)$25,000 to $35,000As incurredAs arrangedVarious suppliers and providers

Notes for this table can be found here.

Greater detail about these startup costs are outlined in our Franchise Disclosure Document, which is provided to franchise candidates who are in touch with us and evaluating the franchise opportunity. To start the process, fill out the form at top right to download our free franchise report and start a conversation. We look forward to answering your questions!

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