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.

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
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

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 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

Barrio Burrito Bar

Barrio Burrito Bar is a Mexican restaurant franchise specializing in build-your-own burritos, tacos, and bowls with fresh ingredients and bold flavors.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$432,000 - $773,000

Talkin' Tacos

Talkin’ Tacos is a Mexican street food franchise serving tacos, burritos, and other Tex-Mex dishes with bold flavors.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$271,000 - $575,000

Taco Pros

Taco Pros serves a variety of Mexican dishes, including tacos, burritos, and quesadillas, offering flavorful and authentic cuisine in a casual setting.

Franchisees

?

1
+
n.a.
n.a.
Investment

?

$457,000 - $584,000

ON THE BORDER MEXICAN GRILL & CANTINA

ON THE BORDER MEXICAN GRILL & CANTINA offers a casual dining experience specializing in Tex-Mex cuisine. Franchisees receive support in marketing, operations, and training, helping them grow their restaurant in the competitive food industry.

Franchisees

?

25
+
0%
0%
Investment

?

$2,426,000 - $5,058,000

Cilantro Taco Grill

Cilantro Taco Grill is a fast-casual Mexican restaurant serving authentic, flavorful dishes made with fresh ingredients, offering a modern twist on traditional Mexican cuisine.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$273,000 - $731,000