- What is Taco John’s?
- How much does a Taco John’s franchise cost?
- How much do Taco John’s franchise owners make?
- Taco John’s franchise requirements
- Taco John’s Merchandise
- Taco John’s Overview
- Is Taco John’s a franchise opportunity?
- Competition Analysis of Taco John’s Franchise
- Facts That Nobody Told You About Taco John’s
- Taco John’s Franchise Review and Information
- Taco John’s Training for Franchises
- Taco John’s Operations to Franchises
- How is Taco John’s territory granted to franchises?
- What is the franchise term of agreement and renewal?
- Does Taco John’s provide financial assistance to franchises?
- Pros and Cons of Owning a Taco John’s Franchise
- What are Taco John’s franchise reviews?
- Taco John’s Franchise Rankings
- Franchise Deck Analysis and Overview
- Brand Franchise Success and Failure Rate
- Conclusion: Should you buy a Taco John’s franchise for sale?
- Frequently Asked Questions (FAQs)
Are you interested in owning this Taco John’s franchise and taking your business to the next level? If so, you’ve come to the right place—we’re going to cover everything you need to know about owning a Taco Johns franchise. From the initial setup and financing process to all of the work that goes into running a successful business, we’ll provide you with all the information you need.
As one of the most popular quick-service restaurants, Taco John’s is a great option for entrepreneurs looking for lucrative opportunities. With over 400 locations across 25 states, it’s clear that Taco John’s has staying power in the industry. Whether your goal is to own a single restaurant or multiple franchises across different states, I’ll provide insight into how much it will cost and how long it will take. We also offer guidance on what you need to do in order to make sure that your business remains successful.
On average, this franchise generates about $1,124,980 in sales per year. This number is based on the average annual sales of 332 franchised restaurants operating in the 2021 fiscal year. The Mexican restaurant industry, which Taco John’s is a part of, has a market size of $59.6 billion. In 2022, Taco John’s was ranked 168th overall on a list of franchise opportunities, based on an analysis of various factors.
What is Taco John’s?
Have you ever wondered what owning this franchise is like? If so, you’re in the right place!
Taco Johns is an international fast-food franchise chain that specialises in Mexican-style cuisine. It has over 370 restaurants in 27 states throughout the US and has been serving up tacos and burritos since 1969!
Taco John’s uses only the freshest ingredients, locally sourced where possible. The menu is a perfect blend of classic Mexican favorites such as tacos and burritos, as well as more creative offerings like their famous Potato Ole® and Super BurritoTM. Plus, the restaurant offers a variety of customizable options—from sauce to toppings—allowing customers to create their own unique flavor experience.
If you’re looking for a business opportunity that offers great potential for growth and profitability, Taco Johns could be the ideal franchise for you! With its delicious food and flexible menu, it could be the perfect place to start your own business.
How much does a Taco John’s franchise cost?
You may be wondering about the cost associated with owning your own franchise. There are many factors that will affect the total amount you need to invest, such as location and size, but here’s an idea of what you’ll need to purchase and operate a Taco John’s in the United States:
- Franchise fee: The initial franchise fee is $25,000.
- Initial Investment: The total initial investment can range from $475,000 to $1,599,000, depending on the location and size of the restaurant. This includes the cost of real estate (if applicable), equipment and fixtures, build-out expenses, and initial inventory.
- Royalty Fee: Taco John’s requires a 5% royalty fee on gross receipts.
- Advertising Fee: Franchisees are required to contribute 4% of gross sales for advertising expenses at both the local and national levels.
- Additional Funds/Working Capital Estimate: An additional $75K–$150K is recommended for working capital when you open a new franchise.
| Taco John’s Franchise Price and Costs | |
| Taco John’s Franchise Fee | $25,000 |
| Taco John’s Franchise Cost | $475,000 to $1,599,000 |
| Royalty Fee | 5% of gross sales |
| Advertising Fee | 4% of gross sales (National Marketing Fund: 2.5% and Local Marketing Fund: 1.5%) |
| Term of Agreement | 20 years |
| Is franchise term renewable? | Yes |
| Renewable Franchise Fees | $5,000 for a 10-year renewal term |
How much do Taco John’s franchise owners make?
How much money can you make owning this franchise? The answer is—it depends on your location, business model, and how well you manage the day-to-day operations.
Being the owner of any franchised business can be profitable with the right amount of effort and dedication. And since Taco John’s is known for its delicious Mexican-inspired menu items and fast service, customers usually come back again and again, which means there is potential for increased profits.
Here are some points to keep in mind:
- Initial investment costs: Before you open your Taco John’s location, you need to pay an initial franchise fee. This may include additional fees for site analysis and market research.
- Ongoing royalty payments: Most franchises have an ongoing royalty payment that allows the corporate brand to collect a part of the revenue from each sale made at your restaurant.
- Advertising fees: Each franchisee is required to contribute towards the cost of a collective advertising fund that runs promotions for the restaurants in the area.
- Food and labour costs: As with any other business, food and labour costs are major expenses that should be managed properly to maximise profits.
These franchisees have historically earned impressive returns on their investments, and they continue to do so as customer demand grows each year. At the same time, it’s important to remember that running a franchised restaurant requires hard work and dedication, so do your research thoroughly before investing in this type of business venture.
What is Taco John’s franchise profit?
I will estimate the Taco John’s franchise profit and years to recoup the investment (ROI).
| AUV | Estimated Annual Profit (12.5%) | Predicted Annual Profit (15%) | Estimated Annual Profit (18%) |
| $ 1,200,000 | $150,000 | $180,000 | $ 216,000 |
| Recoup mid-point
$ 1,037,000 |
6.9 years | 5.7 years | 4.8 years |
The estimated Brand franchise profit is in the range of $150,000 to $216,000 and it will take 4 to 7 years to recoup the investment.
According to industry standards, getting a return on the franchise investment will not take a very long time.
Taco John’s franchise requirements
You have to meet certain requirements in order to be a franchise owner at Taco John’s. The exact requirements vary by country, but here are some of the most common ones you need to fulfil in order to become a franchisee:
- It must have sufficient liquidity. You must have a minimum net worth of $500,000 and a minimum liquid capital of $150,000.
- You must have prior relevant experience. It’s preferred that you have hospitality or restaurant industry experience, but not required.
- Must complete all training and pre-opening programmes put forth by Taco John’s.
- Must sign a 15-year franchise agreement and pay the associated fee upfront (usually about $25,000).
- Must adhere to the approved policies and procedures of Taco John’s.
So although the requirements are quite stringent, they are necessary if you want to become an official franchisee and reap the many benefits that come with it—such as having access to a top-notch support system, knowledgeable advisors, proven operational systems, training, marketing, promotional, and advertising programmes, etc.
Taco John’s Merchandise
Taco John’s offers merchandise such as t-shirts, hats, hoodies, and other apparel that features their logo or brand-related design. Some places even sell labels like cups, keychains and stickers.
To purchase Taco John’s merchandise, you can visit their official website, check out your local Taco John’s restaurant, or search online for third-party retailers that may carry their merchandise.
Taco John’s Overview
| Trade name | Taco John’s |
| Type | Private |
| Industry | Restaurants |
| Genre | Fast food |
| Founded | March 14, 1969; 54 years ago in Cheyenne, Wyoming, one year after its roots as Taco House. |
| Founder | John Turner |
| Headquarters | 808 West 20th Street, Cheyenne, Wyoming
, |
| Number of locations | 379 as of December 29, 2021[1] |
| Area served | |
| Key people | |
| Products | |
| Revenue | US$106.8 million (2021) |
| Number of employees | 8,000 (2019) |
Is Taco John’s a franchise opportunity?
Are you looking for a franchise opportunity? If so, Taco John’s might be a great choice! It’s become one of the top quick-service Mexican restaurants in the United States, and it’s been ranked in Entrepreneur Magazine’s Franchise 500 list since 1997.
Here are additional benefits to owning this franchise:
- A strong tradition of customer satisfaction
- Proprietary marketing plans that keep customers coming back for more
- A comprehensive training program for new franchisees and their employees
- Ongoing support from the corporate office
- Access to shared industry data and resources
Taco John’s has developed an established brand with loyal customers over the years, so why not join them on their journey and become part of their successful franchise network?
Competition Analysis of Taco John’s Franchise
| Taco John’s | Cost to Franchise | Franchisee Fees | Royalty + Ad fees | Expected Profit | Recoup of Capital | FD Rating |
| Taco John’s Franchise | $475,000 to $1,599,000 | $25,000 | 5%+4% | $326,244 | 4-7 years | 3.6/5.0 |
| Sonic Franchise | $1,242,200 – $3,537,700 | $45,000 | 5% + 3.25% | 13% | 14.5 years | 3.5/5.0 |
| BurgerFi
Franchise |
$5,296,471 – $7,166,726 | $50,000 | 4% + 1% | – | – | 3.8/5.0 |
| Burger King Franchise | $1,790,800 – $4,194,700 | $50,000 | 4.5%+ 4% | 16% | – | 3.8/5.0 |
| Subway Franchise | $140,050 – $342,400 | $15,000 | 8% + 4.5% | 7.5% | 4.0/5.0 | |
| KFC
Franchise
|
$1,440,600 – $3,163,550 | $45,000 | 4-5% + 5% | 15% | 13.5 years | 3.7/5.0 |
The Franchise Deck rating for the Taco John’s franchise is 3.6 /5.0.
Facts That Nobody Told You About Taco John’s
Sure, owning this franchise sounds like an awesome idea, but did you know that there are a few important facts that nobody really tells you about? Let’s take a look at them:
- Locations. These franchises are often placed in smaller towns and cities, which may not have the same demand for tacos as more urban areas. This means your franchise may need to make more of an effort to draw customers in.
- Competition. In some areas, this franchise may have other fast food chains that offer similar products nearby. Depending on the area, this could increase competition, lower sales margins, or make running the franchise more difficult.
- Cost. Buying a franchise is expensive: you need to pay franchise fees, cover construction costs, and find money to cover other expenses like licenses and permits. Plus, there are ongoing costs like leasing or owning a building or land location or buying new equipment or supplies.
Taco John’s Franchise Review and Information |
|
| Industry Type | Fast Food |
| Sub Category | Mexican Fast Food |
| Year Established | 1969 |
| Company Name | Taco John’s International, Inc. |
| Founder/Management Head | Jim Creel (CEO) |
| Franchising Started | 1969 |
| Employees at Company H.O | Not publicly available
|
| Franchise Expansion Plan | Taco John’s has plans for continued growth and expansion in various markets. |
| Number of Units | Over 380 locations (as of 2023) |
| Number of Franchise Units | Over 380 locations (as of 2023, nearly all locations are franchised) |
| Social Media Handles | |
| Youtube | |
| Company Office location | 808 W. 20th St., Cheyenne, WY 82001, United States |
Taco John’s Training for Franchises
Owning a This franchise requires good customer service and the ability to follow the established business model. That’s why Taco John’s training programme is so important. They offer a comprehensive six-week training course for all of their new franchise owners and their staff.
· The course details
The training course covers all of the basics that you need to run a successful business. This franchise covers topics such as:
- Managing and budgeting
- Food safety and sanitation
- Operating procedures
- Hiring and developing employees
- Using the Taco John’s POS system
- Marketing strategies
Not only will you get access to their in-depth training materials, but you’ll also have an expert trainer with you every step of the way to answer questions, provide guidance, and help you put what you learn into practise. Plus, after your initial six-week course is complete, there are ongoing webinars, conference calls, and in-person meetings that can help keep your franchise up-to-date with industry developments.
Taco John’s Operations to Franchises
If you’re considering owning this franchise, you might have questions about how their operations differ from those of other franchises. It’s a great question, and here’s what you should know:
· Corporate-owned stores
Taco John’s corporate-owned stores differ from franchises in that they are fully owned and operated by the parent company. This gives them the flexibility to directly oversee every aspect of their operations, which can result in higher performance standards. For example, they can ensure that employees are properly trained and follow all food safety protocols—something that is critical for their success and reputation.
· Franchises
When it comes to franchising, Taco John’s offers franchisees the opportunity to own and manage their own business. Franchisees benefit from the dependable structure of the parent company and enjoy access to a variety of support systems, from restaurant design to marketing guidance. Plus, Taco John’s has been around for more than five decades, so there’s plenty of proven success behind this brand.
No matter which type of store you choose — corporate-owned or franchised — Taco John’s gives store owners the freedom to shape their own destiny with plenty of support along the way.
How is Taco John’s territory granted to franchises?
You might be wondering how Taco John’s grants its franchise territories. A key factor in granting territories is population. The more people that live in an area, the larger the territory. Your territory will typically include both urban and rural areas, meaning that you’ll have to be well-versed in marketing to both types of populations.
· Evaluation Process
The evaluation process for awarding a franchise is quite thorough, so make sure you go into the whole process with eyes wide open. You should expect to undergo financial clause evaluations, background checks, area demographic studies, and more before being awarded a franchise.
· Competition Considerations
Taco John’s also considers competition in the area when granting franchises because too much competition could mean weaker sales for everyone involved. They use metrics like traffic counts and assess who else is in close proximity to serving up tacos before awarding a franchise.
Allocating franchises takes into consideration many factors, such as the size of the population within the defined trade area, traffic count and volume, existing competitors within a given radius, as well as others that may be plying the same trade within certain limits. This ensures that every franchise has an appropriate chance to succeed in its market without too much competition or encroachment from neighbouring franchises!
What is the franchise term of agreement and renewal?
When you become a franchisee of Taco John’s, the franchise agreement defines your relationship with the company. This agreement outlines what you can expect from Taco John’s in terms of support, and it also spells out the duration and renewal process.
The term of the agreement is typically 20 years, and you can renew your contract after that initial period. When you reach the end of your term, you’ll be required to sign a new franchise agreement if you want to keep your franchise open.
Taco John’s tries to make this process easy for its franchisees. During the renewal period, these franchisees get an invitation letter to renew their agreement for another 20-year term. The renewal process requires simple paperwork and a fee payment procedure, but it’s an important one as it keeps your franchise active.
The renewal will also require a review of your franchise agreement by both parties to ensure that all business practises meet current Taco John’s standards. This is an important step in making sure that both parties are on the same page before resuming business operations at the end of each franchise term.
Does Taco John’s provide financial assistance to franchises?
You may be wondering—does Taco John’s provide any financial assistance to franchises? The answer to that is yes! Taco John’s has a special financing system that offers qualifying franchisees access to capital for equipment, restaurant construction, and renovation costs.
What sorts of things are covered by this financial assistance? Here are just a few:
- Equipment for the restaurants, like ovens, hoods, and walk-in coolers
- Building costs for restaurant construction or expansion
- Renovation of existing restaurant locations
- Working capital to cover initial expenses like rent and payroll
- Operating capital for day-to-day expenses throughout the first year of operation
These funds are made available through third-party lenders. To qualify, you need to have an acceptable credit score and at least two years of experience in either the restaurant industry or business management. Taco John’s also provides ongoing training and resources to help you succeed as a franchise owner.
Pros and Cons of Owning a Taco John’s Franchise
Do you have what it takes to own this franchise? Well, like any business, there are pros and cons, so let’s take a look at those.
Pros of Owning a Taco John’s Franchise
- This franchisee enjoys the support and guidance of an established, successful brand.
- The company provides marketing plans, operational procedures, and computer systems to help franchisees succeed.
- With over 450 locations across the U.S., Taco John’s has strong brand recognition.
- This fast-casual restaurant chain offers quick service for customers with an appetite for tacos, burritos, and other Mexican favourites.
- Franchising fees are considerably lower than those of some other fast food brands.
Cons of Owning a Taco John’s Franchise
- To own a single unit, you must have liquid assets worth at least $500,000 plus a net worth of $1 million.
- A franchisee must also pay the purchase price (typically $25K) plus royalty fees to the parent company.
- There is generally no opportunity to renegotiate royalty fees or build up equity, as with a company-owned unit.
- Franchises can be difficult to sell due to limited demand for new units.
- Depending on your location and the type of space available, start-up costs may exceed those of McDonald’s or Burger King franchises.
Whether you decide that owning this franchise is the right move for you or not is ultimately up to you—it all depends on your unique business goals and financial situation.
What are Taco John’s franchise reviews?
Have you done your research to find out what these franchise reviews are saying? If not, you should! Reviews can provide valuable insight into the pros and cons of owning this franchise.
Many reviews cite the great product quality as a huge plus. Customers love its signature seasoned potatoes, award-winning tacos, and other restaurant favourites. Customers also love their unique taco flavours, like “Westwego” and “Southwestern Chicken Bacon Ranch”. It is no surprise that many customers make Taco John’s their go-to for tacos!
Other reviews mention that owners can benefit from strong brand recognition and marketing support. Taco John’s provides its franchise owners with marketing plans to help them attract more customers and take their business to the next level.
However, some reviews mention how expensive it is to open this franchise—upwards of $500K—as well as other drawbacks such as royalty fees, potential saturation in markets where multiple franchises exist, and high rent costs in some locations.
The best way to make sure this franchise is right for you is to assess your individual situation and do your research on what other reviews are saying about it!
Taco John’s Franchise Rankings
Taco John’s has received recognition in the franchise industry, which is a testament to its growth and success. In 2022, Taco John’s ranked 168th overall on Entrepreneur magazine’s Franchise 500 list. This ranking is based on factors such as financial strength and stability, growth rate, and the overall size of the franchise system.
It’s important to note that rankings can change from year to year, so it’s a good idea to check the latest information from credible sources such as Entrepreneur magazine or other reputable franchise ranking publications.
Franchise Deck Analysis and Overview
When you’re ready to go franchise, you’ll want to do a deck analysis and overview of the franchise itself. This includes assessing potential risks as well as determining whether or not the franchise is a good fit for you.
Admittedly, there are risks to consider when investing in this franchise, which include:
- Struggling against other major fast-food franchises
- The cost associated with maintaining a quality reputation
- Having to hire experienced staff and manage employees
It’s important to remember that any franchise—not just Taco John’s—is an investment in both your time and money. That said, the franchisor will likely provide guidance and financial support throughout your journey as a franchisee. You can also look into business loans or lines of credit through private lenders if you need additional funding down the line.
With all this in mind, is the cost associated with investing in this franchise worth it? In short, yes. Despite these risks, franchising has proven to be an incredibly efficient way of growing businesses quickly with limited resources, so it’s certainly worth taking the plunge if you have what it takes!
Brand Franchise Success and Failure Rate
The below table will highlight the Brand’s franchise success and failure rate for the last 3 years. This will supplement your decision-making process.
| Year | Format | Start | End | Change |
| 2018 | Franchise Owned | 382 | 381 | -1 |
| Company Owned | 10 | 11 | +1 | |
| 2019 | Franchise Owned | 381 | 376 | -5 |
| Company Owned | 11 | 11 | 0 | |
| 2020 | Franchise Owned | 376 | 378 | +2 |
| Company Owned | 11 | 11 | 0 |
Conclusion: Should you buy a Taco John’s franchise for sale?
So, should you buy this franchise? That depends on a few things. Do you have the experience and resources to manage the store(s)? Are you willing to commit the time and money necessary to make your business successful? And most importantly, is this something you truly want to do?
These are all important questions to consider before taking the plunge and buying this franchise for sale. You’ll need to weigh out all the pros and cons of investing in this type of business before committing.
To help with your decision-making process, here are some of the points that make owning this franchise an attractive option:
- Low Start-Up Costs: Compared to other franchise businesses, Taco John’s has fairly low start-up costs. This makes it easier for inexperienced entrepreneurs with smaller budgets to enter the market.
- Proven Business Model: There’s no need to worry about reinventing the wheel when investing in Taco John’s; its established business model offers an easy formula for success.
- Marketing Support: The company provides marketing support in order to help their franchisees increase sales, like creating ads they can distribute or providing point-of-sale materials they can display in store.
- Training: New owners will have access to comprehensive training programmes that will teach them everything they need to know about running a successful franchise location.
Ultimately, whether or not owning this franchise is right for you is something only you can decide—but if it sounds like it could be, now’s your chance! With locations all around the world.
Entrepreneurs who want to open a franchise in the category fast food franchise opportunities categories can look at
- Sonic Franchise
- BurgerFi Franchise
- Burger King Franchise
- Subway Franchise
- Kfc franchise
- Dave’s Hot Chicken Franchise
- Chicken Guy franchise
- Halal Guy Franchise
- Golden Chicken Franchise
- Chop Stop Franchise
- El Pollo Loco Franchise
- Portillos franchise
- Cava franchise
Frequently Asked Questions (FAQs)
- Is the Taco John’s franchise profitable?
A Taco John’s franchise can be profitable, depending on factors such as location, management, and market demand. On average, this franchise generates about $1,124,980 in sales per year. However, individual franchise profitability can vary, and it’s essential to conduct thorough research and planning before investing.
- Can you make money owning a Taco John’s?
Yes, you can potentially make money owning this franchise, but profitability depends on factors such as location, management, and market demand. It’s crucial to evaluate the franchise opportunity carefully and consider the costs, competition, and your ability to manage and grow the business.
- Is Taco John’s a franchise?
Yes, Taco John’s is a franchise. It is International, Inc. has been offering franchise opportunities since 1969, and the majority of its locations are owned and operated by franchisees.
- How much is a Taco John’s franchise?
The total investment required to open this franchise ranges from $475,000 to $1,599,000. This cost includes the $25,000 franchise fee, construction, equipment, and other expenses.
- How do Taco John’s franchises make money?
This franchise makes money by selling a variety of Mexican fast-food items, such as tacos, burritos, quesadillas, and more. Franchisees generate revenue from customers who visit their restaurant locations and purchase food items. The profitability of this franchise depends on factors like location, management, and market demand.
