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Rusty Taco Franchise FDD, Costs & Fees (2025)

Fast-casual taco restaurant franchise featuring a menu of creative and flavorful tacos, highlighting a variety of fillings and salsas.

KEY FRANCHISE STATS

Franchisees

?

36
+
9%
9%
Franchise fee

?

$30,000
Investment

?

$528,000 - $1,128,000
Revenue (AUV)

?

Undisclosed

$601,000

+
-44.3%
-44.3%

Rusty Taco, founded in 2010 by Rusty Fenton and his wife Denise in Dallas, Texas, captures the spirit of a local taco stand, offering a variety of fresh, authentic street-style tacos.

The franchise stands out with its commitment to authenticity, fresh ingredients, and straightforward menu, reflecting the true essence of Mexican street food.

Rusty Taco’s offerings celebrate traditional flavors, featuring tacos paired with beverages like margaritas and beer, in line with Rusty's belief that "Tacos are the most important meal of the day."

In 2018, the franchise returned to its original name, "Rusty Taco," after a brief period as R Taco. This change marked a return to the brand’s foundational principles and honored the legacy of Rusty Fenton, who aspired to share his love for authentic tacos with a wider audience.

Initial investment

Here's what you would need to invest 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 $30,000
Rent and Security Deposit $3,000 – $10,000
Utility Deposits $6,000 – $10,000
Construction, Remodeling, and Leasehold Improvements $253,000 – $621,000
Permits and Licenses $3,000 – $6,950
Architect Fee $20,000 – $60,000
Furniture, Fixtures, Equipment, and Signage $163,000 – $250,000
Initial & Opening Training Costs $0 – $15,000
Computer System $2,000 – $5,000
Initial Inventory/Supplies $7,400 – $10,000
Professional Services $5,000 – $15,000
Initial Advertising and Marketing Expenses $10,000 – $15,000
Insurance $6,000 – $30,000
Additional Funds (3 months) $20,000 – $50,000
TOTAL $528,400 – $1,127,950

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Type of Expenditure Amount
Initial Franchise Fee $30,000
Rent and Security Deposit $3,000 – $10,000
Utility Deposits $6,000 – $10,000
Construction, Remodeling, and Leasehold Improvements $253,000 – $621,000
Permits and Licenses $3,000 – $6,950
Architect Fee $20,000 – $60,000
Furniture, Fixtures, Equipment, and Signage $163,000 – $250,000
Initial & Opening Training Costs $0 – $15,000
Computer System $2,000 – $5,000
Initial Inventory/Supplies $7,400 – $10,000
Professional Services $5,000 – $15,000
Initial Advertising and Marketing Expenses $10,000 – $15,000
Insurance $6,000 – $30,000
Additional Funds (3 months) $20,000 – $50,000
TOTAL $528,400 – $1,127,950

Franchise Disclosure Document

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Number of units

Training 

The franchisor's training program for franchisees covers a wide range of topics to ensure they are well-prepared to manage and operate a Rusty Taco Restaurant. The training includes:

Introduction/Orientation Franchisees are introduced to the Rusty Taco brand, its culture, values, and operational philosophy. This initial phase lays the groundwork for the entire training program, aligning franchisees with the company's expectations and standards.

Restaurant Operations This comprehensive section addresses the essential day-to-day management and operational skills required to run a Rusty Taco Restaurant. Franchisees receive hands-on training in kitchen operations, customer service, staff management, food safety, and adherence to health and regulatory guidelines.

Marketing/Customer Services This segment provides franchisees with the tools and knowledge to effectively market their restaurant and engage with customers. Topics include local store marketing strategies, brand promotion, customer relationship management, handling customer feedback, and using social media to boost customer engagement and restaurant visibility.

Territory Protection

The franchisor offers franchisees a "Protected Territory," typically defined as a geographic area centered around the franchisee's restaurant, usually within a specified radius.

Within this Protected Territory, the franchisor agrees not to open or permit the opening of another competing Rusty Taco Restaurant during the Franchise Agreement term, as long as the franchisee remains in full compliance with the agreement. Despite this protection, the franchisor maintains certain rights within and beyond the Protected Territory.

These rights include the ability to develop and establish other business systems using the same or different trademarks, to advertise and promote the franchise system, and to operate non-traditional Rusty Taco Restaurants at any location, including within the Protected Territory.

Competitors

Below are some of

Rusty Taco

key competitors in the

Mexican

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Upgrade
Gross Profit
Upgrade
EBITDA
Upgrade

36

New
+
9%
9%

$30,000

$528,000

$1,128,000

n.a.

$601,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Competitors

Taco Rico or Taco Works

Taco Rico / Taco Works is a Tex-Mex restaurant franchise offering tacos, burritos, fajitas, chimichangas, salads, and salsa bars, serving families and office crowds, and known for quick counter service, complimentary chips, and approachable, value-focused neighborhood locations.

Franchisees

?

3
+
0%
0%
Investment

?

$155,000 - $341,000

Mike's Red Tacos

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.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$640,000 - $1,988,000

Mucho Burrito

Mucho Burrito is a fast-casual Mexican restaurant franchise offering burritos, bowls, tacos, and catering, serving lunch and dinner guests seeking bold flavors, and known for fresh-prepared ingredients, customizable entrees, and a contemporary brand backed by strong training and support.

Franchisees

?

1
+
n.a.
n.a.
Investment

?

$470,000 - $925,000

District Taco

District Taco is a fast-casual Mexican franchise offering made-to-order tacos, bowls and margaritas, serving lunch and dinner crowds, and known for fresh ingredients, bold regional flavors and franchise growth momentum.

Franchisees

?

2
+
n.a.
n.a.
Investment

?

$734,000 - $1,458,000

Chronic Tacos

Chronic Tacos is a fast-casual franchise offering customizable tacos, burritos, bowls, and Mexican favorites, serving lunch and late-night diners, and known for fresh ingredients, made-to-order prep, and a laid-back California vibe.

Franchisees

?

29
+
-36%
-36%
Investment

?

$284,000 - $884,000

Taco Cabana

Taco Cabana is a fast-casual Mexican restaurant franchise serving tacos, fajitas, and freshly prepared salsas in a relaxed, colorful setting.

Franchisees

?

6
+
0%
0%
Investment

?

$1,267,000 - $2,776,000

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