Rusty Taco Franchise Cost Profit Reviews

If you’re considering investing in a franchise business, you may want to take a look at the Rusty Taco franchise. This fast-casual restaurant franchise offers a unique menu of flavorful and affordable tacos that are sure to satisfy your customers’ taste buds. Rusty Taco’s focus on quality ingredients and authentic flavours has earned it a loyal following across the United States.

But, before you jump in, it’s essential to do your research on Rusty Taco franchise cost, profit potential, and reviews from current franchisees. This will help you make an informed decision and determine if Rusty Taco is the right franchise opportunity for you. In this article, we’ll provide you with all the information you need to know to get started.The market for food and beverage services expanded at a compound annual growth rate (CAGR) of 5.7% from $3,559.94 billion in 2022 to $3,763.14 billion in 2023.

 

How much does a Rusty Taco franchise cost

The total investment required to open this franchise ranges from $531,900 – $897,450. This includes the franchise fee of $25,000, as well as costs related to site selection, leasehold improvements, equipment, inventory, and initial marketing expenses. Rusty Taco also requires franchisees to have a minimum net worth of $1 million, with at least $500,000 in liquid assets. It’s important to note that these are estimated costs, and additional expenses may be incurred during the development and operation of the franchise.

 

How much does it cost to franchise a Rusty Taco in the United States?

The total investment required to open this franchise ranges from $531,900 – $897,450. This includes the franchise fee of $25,000, as well as costs related to site selection, leasehold improvements, equipment, inventory, and initial marketing expenses.

 

Rusty Taco Franchise Price and Costs
Franchise Fee	$25,000
Franchise Cost	$531,900 – $897,450
Royalty Fee	5%
Advertising Fee	2.3%
Term of Agreement	10 Years
Is franchise term renewable?	Yes
Renewable Franchise Fees	–

 

 

How much do Rusty Taco franchise owners make?

It is difficult to estimate the exact amount that the brand’s franchise owners make, as it depends on various factors such as location, competition, franchise fees, operating costs, and other economic factors. However, we can make some rough estimates based on the Average Unit Volume (AUV) of this franchise, which is $1,031,060.

 

What is Rusty Taco franchise profit?

 

I will estimate/analyse/project the franchise profit and years to recoup the investment (ROI).

 

AUV	Estimated Annual Profit (12.5%)	Estimated Annual Profit (15%)	Estimated Annual Profit (18%)
$1,031,060	$ 128882	$ 154659	$ 185590
Recoup mid-point $714,675	5.5 years	4.6 years	3.8 years

The estimated  franchise profit is in the range of $ 128882 to $ 185590  and it will take 3.8 to 5.5 years to recoup the investment. According to industry standards, getting a return on the franchise investment will not take a very long time.

 

Rusty Taco Franchise Requirements

• Financial Requirements: Rusty Taco requires a minimum net worth of $1 million, with at least $500,000 in liquid assets. The total investment required to open this franchise ranges from $531,900 – $897,450, including the franchise fee of $25,000.
• Experience: Rusty Taco prefers franchisees to have previous experience in the restaurant or hospitality industry, either as an owner, operator, or manager.
• Commitment: Rusty Taco expects its franchisees to be committed to the brand and its values, and to be actively involved in the day-to-day operations of the franchise.
• Location: Rusty Taco typically looks for franchisees who are interested in opening a restaurant in a high-traffic area, such as a busy shopping centre or urban location.
• Training: Rusty Taco provides comprehensive training and support to its franchisees, including a 3-week training program at the company’s headquarters in Minneapolis, as well as ongoing operational support and marketing assistance.

 

What is Rusty Taco franchise reviews

Positive Reviews : 

“I’m considering investing in a Rusty Taco and my experience so far has been great. The comprehensive training and support provided by the company has given me confidence to move forward with the investment.”

“Rusty Taco’s established brand and loyal customer base provide a solid foundation for a potentially successful business model, offering franchisees a competitive advantage in the fast-casual restaurant industry.”

“The significant initial investment required for owning a Rusty Taco outlet may seem daunting, but the potential for long-term growth and profitability makes it a worthwhile investment opportunity to consider.”

Negative Reviews:

“One potential concern for investing in  Rusty Taco  is the limited territorial protection, which could result in increased competition from other franchises opening in close proximity and potentially leading to lower profits.”

“I’m concerned about the labor costs associated with owning a Rusty Taco outlet. They could be higher than anticipated and may cut into the profits. It’s something I need to carefully consider before making a decision about investing.”

 

Rusty Taco Franchise Rankings

The franchise was ranked #20 in the Mexican Food category in the year 2023.

 

What is the Rusty Taco?

 

Rusty Taco specialises in offering mouthwatering, reasonably priced street-style tacos prepared with real, natural ingredients. In 2010, Dallas, Texas saw the opening of its first restaurant. Since then, the company has grown to include a number of other locations around the country. Along with tacos, it also provides a selection of sides, such as chips and salsa, guacamole, and queso. With its great meals and laid-back ambiance, the restaurant has gained a devoted following.

 

Is Rusty Taco a Franchise Opportunity?

There is a franchise opportunity for Rusty Taco. Since the firm started franchising in 2013, it has grown to more than 36 sites around the country. Rusty Taco provides a fully-managed franchise system with assistance with site selection, hiring employees, marketing, and continuing operational support.

 

Facts That Nobody Told You About Rusty Taco

• Rusty Taco uses fresh, high-quality ingredients to create its signature tacos, which are made to order and can be customised with a variety of toppings and sauces.
• The chain’s menu includes a range of taco options, from classic street-style tacos to more unique combinations, such as Korean BBQ and Nashville hot chicken.
• Rusty Taco has received numerous accolades and awards, including being named one of the “10 Best Fast-Food Chains” by USA Today in 2019.
• In addition to its delicious food, Rusty Taco is known for its laid-back, casual atmosphere, which features a colourful, eclectic decor and a welcoming vibe.

 

Rusty Taco Franchise Review and Information
Industry Type	Food & Beverage
Sub Category	Mexican Food
Year Established	2010
Company Name	Inspire Brands
Founder/Management Head	Brendan Mauri
Franchising Started	2010
Employees at Company H.O	3000
Franchise Expansion Plan	Throughout the US
Number of Units	36
Number of Franchise Units	36
Social Media Handles	Facebook
	Twitter
	Instagram
Company Office location	3 Glenlake Pkwy. N.E. Atlanta, GA 30328

 

Rusty Taco Training to Franchises

Rusty Taco offers comprehensive training programs to ensure that franchise owners and their staff are fully equipped to run a successful business. The training is divided into two main categories: on-the-job and classroom training. On-the-job training involves hands-on experience at an existing Rusty Taco location. This training typically lasts between 144 to 172 hours and covers all aspects of the franchise operation, including food preparation, customer service, inventory management, and financial reporting. Classroom training, on the other hand, is conducted in a more traditional classroom setting. This training typically lasts between 16 to 28 hours and covers a range of topics such as branding, marketing, and management. Classroom training is designed to provide franchise owners with the skills and knowledge they need to effectively manage their business and build a strong brand within their community.

 

Rusty Taco Operations to Franchises

When considering the brand’s franchise, there are several operational aspects to keep in mind. Firstly, it is important to note that absentee ownership is not permitted, meaning that franchise owners are required to be actively involved in the day-to-day operations of the business. Additionally, these franchises cannot be run from a home or mobile unit, nor can they be operated on a part-time basis. When assessing staffing requirements and related expenditures, it is important to keep in mind that a franchise requires at least 20 people for an effective operation. Last but not least, it is important to know that Rusty Taco does not grant exclusive areas to franchisees, which allows for the possibility of numerous franchises to exist in the same region.

 

How is Rusty Taco Territory Granted to Franchises

Rusty Taco does not typically grant exclusive territories to its franchisees, meaning that multiple franchises may be located within a given geographic area. This is a common practice in the franchise industry, and it allows the company to expand its reach and market share. Instead of granting exclusive territories, Rusty Taco focuses on carefully selecting franchisees who are a good fit for the brand and have the potential to successfully operate a franchise in their desired location. The company also provides support and guidance to franchisees throughout the site selection process, ensuring that new locations are strategically placed for optimal success. While some franchisees may prefer exclusive territories, Rusty Taco’s approach allows for flexibility and agility in a rapidly changing market.

 

What is the Franchise Term of Agreement and Renewal?

The term of the franchise agreement offered by the franchisor is 10 years, which can be renewed subject to the terms and conditions of the company.

 

 

Does Rusty’s Taco provide Financial Assistance to Franchises?

The brand does not provide any in house financing, however, it has established connections with external entities that provide financial assistance for the following purposes: paying the franchise fee, covering initial business expenses, acquiring equipment, stocking inventory, managing outstanding customer payments, and facilitating payroll processing.

Pros & Cons of owning a Rusty’s Taco Franchise

Pros of owning a Rusty Taco Franchises 

• Established Brand: Rusty Taco has a well-known and well-loved brand with a loyal customer base, which can help drive traffic and revenue for franchisees.

• Strong Support System: The company offers comprehensive training, ongoing support, and a network of experienced franchisees to help new owners navigate the challenges of running a business.

• Menu and Product Development: Rusty Taco continuously develops new menu items and products, helping franchisees stay competitive and offer customers exciting new options.

• High-Quality Products: Rusty Taco prides itself on using fresh, high-quality ingredients and preparing food from scratch daily, which can be a selling point for health-conscious customers.

• Opportunities for Growth: Rusty Taco is a growing brand with plans for expansion, which means there may be opportunities for franchisees to open additional locations in the future.

Cons of Owning a Rusty Taco Franchises

• High Initial Investment: Owning this franchise requires a significant upfront investment, including franchise fees, equipment, and other startup costs.

• Limited Territory Protection: Rusty Taco does not offer exclusive territories to franchisees, meaning that multiple franchises may be located within a given geographic area.

• Limited Flexibility: Franchisees are required to follow Rusty Taco’s established system and may have limited flexibility in making changes or adjustments to the menu or business operations.

• Labour Costs: As with any foodservice business, labour costs can be a significant expense for franchisees, particularly in areas with high minimum wages or labour shortages.

• Time Commitment: Running a successful franchise requires a significant time commitment, as owners are expected to be actively involved in day-to-day operations and management.

 

 

Rusty’s Taco Franchise Success and Failure Rate

 

The below table will highlight the Rusty Taco’s franchise success and failure rate for the last 3 years. This will supplement your decision-making process.

 

Year	Format	Start	End	Change
2019	Franchise Owned	22	25	+3
	Company Owned	9	9	0
2020	Franchise Owned	25	30	+5
	Company Owned	9	4	-5
2021	Franchise Owned	30	32	+2
	Company Owned	4	4	0

 

Competition Analysis of Rusty’s Taco Franchise

 

Rusty Taco	Cost to Franchise	Franchisee Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
Rusty Taco	$532K – $897K	$25,000	5% + 2.3%	$206,212	6 years	3.9/5.0
Potato Corner Franchise	$186,500 – $596,000	$35,000	6%+1-2%	–	–	4.0/5.0
Five Guys Enterprises LLC Franchise	$306,200- $704,700	$25,000	6%+1.5%	$352,000	–	3.5/5.0
Firehouse Subs Franchise	$190K – $1.1M	$20,000	6%+3%	$ 109,607	7 years	3.9/5.0
Jersey Mike’s Subs Franchise	$194K – $955K	$18,500	6.5% + 5%	$157,357	5 years	4.0/5.0
Taco Bell Franchise	$576K – $3.4M	$25,000 – $45,000	5.5% + 4.25%	$242,682	12 years	3.9/5.0

The Franchise Deck rating for the Rusty’s Taco franchise is 3.9/5.0.

 

Franchise Deck Analysis and Overview

Owning this franchise has several benefits, including an established brand with a loyal customer base, strong support from the company, and opportunities for growth. Rusty Taco’s commitment to high-quality, fresh ingredients can attract health-conscious customers. However, franchisees should consider the significant upfront investment, limited territorial protection, and labour costs, as well as the time commitment required for day-to-day operations. Ultimately, careful analysis of the franchise agreement and financial projections can help determine if Rusty Taco is a worthwhile investment for potential franchisees.

 

Potential Risks to consider before investing in a Rusty’s Taco franchising

Before investing in this franchise, it’s important to consider potential risks that could impact your investment. These include high startup costs, ongoing franchise fees, and limited territorial protection. You should also be prepared to commit significant time and effort to managing the business, and be aware of potential challenges related to labour costs and competition from other foodservice providers. Careful evaluation of these factors and a thorough understanding of the franchise agreement can help you make an informed decision about whether Rusty Taco is the right investment opportunity for you.

 

Is the Rusty’s Taco franchise Profit Worth the Cost?

Whether or not this franchise profit is worth the cost will depend on individual circumstances and goals. While the initial investment is significant, the AUV and estimated profit potential suggest that the franchise could be profitable in the long term. However, it’s important to consider the time it will take to recoup the investment, which is between 5.25 to 7 years. Careful analysis of the franchise agreement and financial projections can help investors determine if Rusty Taco is a worthwhile investment opportunity for their specific situation.

Conclusion : Should You Buy a Rusty Taco franchise for sale?

In conclusion, owning a Rusty Taco franchise can be a smart investment for those who are passionate about serving fresh and authentic Mexican cuisine to a loyal customer base. With an established brand, strong company support, and opportunities for growth, the franchise offers a potentially profitable business model. However, prospective franchisees should consider the significant upfront investment, limited territorial protection, and labour costs, as well as the time commitment required for day-to-day operations. By carefully analysing the franchise agreement and financial projections, investors can make an informed decision about whether Rusty Taco is the right investment opportunity for their specific circumstances and goals. Ultimately, owning this franchise could be a great way to become part of a successful and growing restaurant chain while fulfilling a passion for delicious food and authentic Mexican culture.

Entrepreneurs who want to open a franchise in the food and beverage category  franchise opportunities categories can look at 

 

1. Potato Corner Franchise 
2. Five Guys Enterprises LLC Franchise
3. Firehouse Subs Franchise
4. Jersey Mike’s Subs Franchise 
5. Taco Bell franchise 
6. Jollibee Foods Franchise
7. Wingstop Franchise
8. Shake Shack Franchise
9. In-N-Out Burger franchise
10. Chick-fil-A Franchise
11. McDonald’s Franchise
12. Tous Les Jours Franchise
13. Velvet Taco Franchise
14. Sushi Sake Franchise
15. Summer Moon franchise

 

Frequently Asked Questions (FAQs)

 

• Is the Rusty Taco franchise profitable?

The estimated  franchise profit is in the range of $ 154,659 to $ 257,765  and it will take 5.25 to 7 years to recoup the investment. 

• Can you make money owning a Rusty Taco franchise?

It is difficult to estimate the exact amount that franchise owners make, as it depends on various factors such as location, competition, franchise fees, operating costs, and other economic factors. However, we can make some rough estimates based on the Average Unit Volume (AUV) of this franchise, which is $1,031,060.

• Is Rusty Taco a franchise?

Yes, Rusty Taco is a franchise opportunity. The company began offering franchises in 2013, and since then has expanded to over 30 locations across the United States.

• How much is a Rusty Taco franchise?

Rusty Taco requires a minimum net worth of $1 million, with at least $500,000 in liquid assets. The total investment required to open the brand’s franchise ranges from $531,900 – $897,450, including the franchise fee of $25,000.

• How do Rusty Taco franchises make money?

The franchises make money primarily through the sale of their menu items, with profits generated by the difference between the cost of goods sold and the menu prices, as well as any additional revenue from catering or other services.