Mike's Red Tacos Franchise FDD, Costs & Fees (2026)
Mike's Red Tacos is a fast-casual Mexican franchise offering birria tacos, quesadillas, and shareable plates, serving flavor-driven diners and late-night crowds, and known for richly stewed meats, vibrant red tortillas, lively branding, and roots in San Diego’s taco culture.
KEY FRANCHISE STATS
Franchisees
?
0
+
n.a.
n.a.
Franchise fee
?
$40,000
Investment
?
$640,000 - $1,988,000
Revenue (AUV)
?
Undisclosed
$0
+
n.a.
n.a.
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Mike’s Red Tacos is a fast-casual Mexican food franchise known for its bold birria tacos and creative, crave-driven menu. The brand was founded in 2021 in San Diego, California by entrepreneur Mike Touma, starting as a neighborhood food truck in the Bay Park area.
Its slow-simmered birria and signature red-dipped tortillas quickly gained a loyal following, leading to the opening of multiple brick-and-mortar locations. The concept centers on authentic flavors paired with a modern, social-media-friendly presentation.
Mike’s Red Tacos is headquartered in Pasadena, California and operates through Mike’s Red Tacos Franchise Co, LLC. The company began franchising in 2025, responding to strong customer demand and rapid brand recognition in Southern California.
The menu focuses on birria-based items such as tacos, quesadillas, burritos, mulitas, birria ramen, and loaded fries, all built around a streamlined kitchen process. This simplicity helps franchisees manage labor and food costs while delivering a highly repeatable customer experience.
Initial investment
The initial investment required for a Mike's Red Tacos franchise is
$640,000 - $1,988,000.
That is the total cost you would need to finance if you were to start this franchise.
These costs are provided by the franchisor in the Franchise Disclosure Document.
Type of Expenditure
Amount
Initial Franchise Fee
$40,000
Architect / Engineer
$14,000 – $50,000
Business Licenses and Permits
$1,000 – $30,000
Construction, Remodeling and Leasehold Improvements
$275,000 – $875,000
Equipment
$110,000 – $315,000
Furniture, Fixtures and Decorations
$11,500 – $100,000
Smallwares
$11,000 – $18,000
Signage
$17,000 – $110,000
Graphics and Artwork
$30,000 – $70,000
Grand Opening Kit, Menu Boards
$12,500 – $15,000
Drive-Thru, Loop Timers and Signage
$0 – $35,000
Computer Equipment and POS Systems
$13,500 – $40,000
Office Supplies
$1,000 – $3,000
Uniforms
$1,500 – $5,000
Initial Inventory and Supplies
$20,000 – $50,000
Insurance Deposits
$1,500 – $4,000
Pre-Opening Rent
$5,000 – $20,000
Initial Training
$12,000 – $23,000
New Restaurant Opening Fee
$0 – $15,000
Pre-Opening Labor Expense
$15,000 – $40,000
Pre-Opening and Grand Opening Advertising
$10,000 – $12,000
Miscellaneous Opening Costs
$1,000 – $20,000
Professional Fees
$1,000 – $15,000
Media Fee
$20,000 – $35,000
Additional Funds (3 Months)
$16,300 – $48,000
Total Estimated Initial Investment
$639,800 – $1,988,000
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Type of Expenditure
Amount
Initial Franchise Fee
$40,000
Architect / Engineer
$14,000 – $50,000
Business Licenses and Permits
$1,000 – $30,000
Construction, Remodeling and Leasehold Improvements
$275,000 – $875,000
Equipment
$110,000 – $315,000
Furniture, Fixtures and Decorations
$11,500 – $100,000
Smallwares
$11,000 – $18,000
Signage
$17,000 – $110,000
Graphics and Artwork
$30,000 – $70,000
Grand Opening Kit, Menu Boards
$12,500 – $15,000
Drive-Thru, Loop Timers and Signage
$0 – $35,000
Computer Equipment and POS Systems
$13,500 – $40,000
Office Supplies
$1,000 – $3,000
Uniforms
$1,500 – $5,000
Initial Inventory and Supplies
$20,000 – $50,000
Insurance Deposits
$1,500 – $4,000
Pre-Opening Rent
$5,000 – $20,000
Initial Training
$12,000 – $23,000
New Restaurant Opening Fee
$0 – $15,000
Pre-Opening Labor Expense
$15,000 – $40,000
Pre-Opening and Grand Opening Advertising
$10,000 – $12,000
Miscellaneous Opening Costs
$1,000 – $20,000
Professional Fees
$1,000 – $15,000
Media Fee
$20,000 – $35,000
Additional Funds (3 Months)
$16,300 – $48,000
Total Estimated Initial Investment
$639,800 – $1,988,000
Franchise Disclosure Document
Below is Mike's Red Tacos's 2025 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
Mike's Red Tacos had 2 total units in 2025, of which 0 were franchised-owned and 2 company-owned.
Mike’s Red Tacos offers a comprehensive and multi-phase training program to prepare franchisees for successful restaurant operation. The key components of this training are:
Initial Training Program The Initial Training Program is conducted at the franchisor’s training facilities in San Diego or another designated location. It is mandatory for the Franchisee, Operating Principal, Director of Operations, and up to six additional team members for the first location. The program includes system methods, operational standards, and practical application.
Extra Practice Week and Online Training Franchisees must also complete an "Extra Practice Week" and online training, typically scheduled at least 60 days before opening. This includes hands-on training to reinforce key operational tasks. Participation is required for final approval to open the restaurant.
On-Site Opening Assistance A New Restaurant Opening (NRO) Team provides on-site assistance around the grand opening, unless the franchisee has four or more locations and certified internal trainers. This support ensures real-time coaching during the critical launch period.
Territory Protection
Mike’s Red Tacos provides franchisees with a defined territory that may include a geographic radius or specifically described area as outlined in the franchise agreement.
However, the franchise does not guarantee exclusive territorial rights. Even within an assigned territory, the franchisor retains broad rights to open company-owned restaurants, authorize others to operate Mike’s Red Tacos outlets, or sell through other channels.
In some cases, a franchisee may receive a limited Area of Protection, but this protection does not apply to non-traditional venues such as airports or malls, nor does it restrict the franchisor from operating under different brand names within the area.
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