FREQUENTLY ASKED QUESTIONS
FDD is an acronym for Franchise Disclosure Document. It is a federally required document that provides detailed information about a franchise opportunity. The FDD provides the framework for the relationship between franchisor and franchisee and also discloses information about startup costs, past revenues reported by franchisees and more. We provide a free copy of our latest FDD to qualified candidates during the evaluation process.
The Federal Trade Commission prohibits us from providing earnings estimates or profit potential. This is why we encourage prospective franchisees to engage in significant due diligence, including talking to existing franchisees. Item 19 of our FDD includes information on our financial performance, which you may find helpful. We provide a full list of our existing operators, as well as sales/operating cost information in our FDD. A free copy of our FDD will be provided to all qualified candidates..
While costs can vary based on venue, development type, geography, etc., average startup costs for a traditional freestanding unit range from $942,000 to $1.388 million. You can read more details about the initial investment, including ranges for other store footprints, in Item 7 of our FDD.
To qualify for a single unit, you or your partnership need a minimum of $500,000 in documented liquid assets and a net worth of at least $1 million. For development commitments of 5 units or greater, financial requirements will vary based on the proposed size and scope of the Area Development Agreement.
We do not provide direct financing, but we have established relationships with third-party lenders that may assist you in obtaining financing.
Foodservice experience is very helpful, but not required. However, 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 our brand.
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.
A drive-thru window is required in most circumstances. We operate in the fast food category and a significant portion of our business is served through our drive-thru window. However, they may not be required in non-traditional locations such as convenience stores , travel plazas, malls, airports or college campuses.
Approximately 6-12 months from the date the Franchise Agreement is signed. However, that timeline may vary depending on venue type, availability of land, local permits and licenses, weather and other factors.
The Franchise Fee for your first location is $25,000 and each subsequent location is $20,000.
Monthly royalty fees are 5% of net sales for traditional restaurants and 7% of net sales for non-traditional restaurants. Net sales are the total receipts from all sales of the restaurant, excluding sales tax.
Currently, a minimum of 4% of net sales is required for the Advertising Media Fund. The fee for non-traditional restaurants is 2% of net sales.