What Are My Startup Costs?

Opening your own Taco John’s QSR franchise costs between $942,000 and $1.388 million on average for a traditional unit.

Taco John’s is a longtime stable brand in a growing segment of the QSR franchise market. We’re growing our presence in markets that are already loyal to our Mexican food franchises as well as expanding into markets that are new to Taco John’s. We’re actively seeking experienced entrepreneurs to help us grow.

For each traditional unit, you or your partnership will need liquid assets of at least $500,000 and a minimum net worth of $1 million. The initial startup costs for a traditional unit are estimated between $942,000 and $1.388 million. However, startup costs for individual restaurants may vary significantly based on such factors as location and floor plan. Taco John’s offers multiple floor plans to help investors take advantage of a variety of locations, including traditional freestanding drive-thru locations, end-caps with drive-thru, travel plaza locations and non-traditional real estate opportunities.

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

learn about Taco John's franchise cost

The franchise fee for traditional locations is $25,000 for the first restaurant and $20,000 for each subsequent location. For non-traditional locations such as malls, airports or college campuses, the 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 Taco John’s franchise costs:

Signature T16 Restaurant

Signature T16 restaurant buildings are 1,575 to 2,100 square feet with seating for 40-56. They require a 22,000- to 30,000-square-foot lot with parking capacity for 20-30 vehicles. The following chart from our latest Franchise Disclosure Document (FDD) describes the 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 $1,388,500
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 $49,500As 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 from our most recent FDD 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 $642,500
Initial Franchise Fee (1)$10,000CashIn full upon signing the Franchise AgreementUs
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 $17,500As 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 is outlined in Item 7 of the FDD, which is provided to all qualified franchise candidates who are in touch with us and considering investing in the Taco John’s QSR franchise opportunity. To start the process, please fill out the form on this page. We’ll send you our free franchise report and start a conversation. We look forward to hearing from you!

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