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Taco Bell Franchise FDD, Costs & Fees (2026)

Fast-food Mexican restaurant franchise known for its tacos, burritos, and Tex-Mex-inspired menu items, offering affordable and convenient dining options.

KEY FRANCHISE STATS

Franchisees

?

7349
+
4%
4%
Franchise fee

?

$45,000
Investment

?

$935,000 - $1,815,000
Revenue (AUV)

?

Undisclosed

$0

+
n.a.
n.a.
Upgrade

Taco Bell, part of Yum! Brands, Inc., is a renowned fast-food chain celebrated for its Mexican-inspired menu. Established in 1962 by Glen Bell in Downey, California, the brand has expanded into a global powerhouse in the fast-food industry.

Headquartered in Irvine, California, Taco Bell started franchising in 1965, a pivotal move that fueled its rapid expansion. The chain stands out in the competitive market with its focus on affordable options and innovative menu items.

From budget-friendly dollar menus to iconic creations like Doritos Locos Tacos, Taco Bell continuously redefines fast-food flavors to stay ahead of trends.

This winning blend of cost-conscious offerings and bold culinary ideas has solidified Taco Bell’s reputation as a leading name in the fast-food world.

Initial investment

The initial investment required for a Taco Bell franchise is $935,000 - $1,815,000. 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.

Taco Bell offers 2 types of franchises:

Type Initial Investment Range
New Taco Bell In-Line or EndCap $934,750 - $1,815,200
New Traditional Unit $1,859,750 - $4,310,200

We are summarizing below the main costs associated with opening a Taco Bell new In-Line or EndCap franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure Amount (Low) Amount (High)
Background Check Fee $500 $700
Initial Franchise Fee $25,000 $25,000
First Unit Construction Services $27,250 $27,250
Optional Real Estate Services $10,000 $37,250
Permits, Licenses, Security Deposits $75,000 $150,000
Real Property $45,000 $150,000
Building/Site Construction $450,000 $900,000
Equipment / Signage / Decor / POS $250,000 $450,000
Initial Inventory $7,000 $10,000
Grand Opening Expense $5,000 $5,000
Additional Funds – 3 months $40,000 $60,000
Total $934,750 $1,815,200

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Taco Bell offers 2 types of franchises:

Type Initial Investment Range
New Taco Bell In-Line or EndCap $934,750 - $1,815,200
New Traditional Unit $1,859,750 - $4,310,200

We are summarizing below the main costs associated with opening a Taco Bell new In-Line or EndCap franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure Amount (Low) Amount (High)
Background Check Fee $500 $700
Initial Franchise Fee $25,000 $25,000
First Unit Construction Services $27,250 $27,250
Optional Real Estate Services $10,000 $37,250
Permits, Licenses, Security Deposits $75,000 $150,000
Real Property $45,000 $150,000
Building/Site Construction $450,000 $900,000
Equipment / Signage / Decor / POS $250,000 $450,000
Initial Inventory $7,000 $10,000
Grand Opening Expense $5,000 $5,000
Additional Funds – 3 months $40,000 $60,000
Total $934,750 $1,815,200

Franchise Disclosure Document

Below is Taco Bell's 2025 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.

Number of units

Taco Bell had 7847 total units in 2025, of which 7349 were franchised-owned and 498 company-owned.

Frequently Asked Questions

Competitors

Below are some of

Taco Bell

key competitors in the

Mexican

sector.

Franchise
Franchisees
Royalty fee
Total investment
Revenue
Upgrade
EBITDA
Upgrade

7349

New
+
4%
4%

5.50%

$935,000

-

$1,815,000

$0

n.a.

$xxx,xxx

n.a.

xx%

n.a.

Training 

Taco Bell offers a comprehensive training program for its franchisees to ensure consistent quality and operational excellence across all locations. The training encompasses several key components:

  1. Initial Training: Franchisees participate in a minimum seven-week course at Yum! University, which includes an immersion program in Irvine, California. This training provides a thorough understanding of managing a Taco Bell franchise.
  2. On-the-Job Training: Franchisees are required to complete 400 hours of practical, hands-on training. This experience covers daily operations, customer service, and team management within an actual Taco Bell restaurant setting.
  3. Classroom Training: An additional eight hours of classroom instruction focuses on theoretical aspects of franchise management, including business operations, marketing strategies, and adherence to company policies.
  4. Ongoing Support: Beyond initial training, Taco Bell provides continuous support through performance improvement programs and resources to help franchisees maintain high standards and adapt to new developments within the brand.

Territory protection

Taco Bell's franchise agreements do not grant territorial protection or exclusivity to franchisees. This means that franchisees cannot prevent the franchisor or other entities from establishing additional Taco Bell locations nearby.

While the franchisor may, at its discretion, provide temporary territorial rights in specific situations, these are not standard provisions in the franchise agreement.

The absence of territorial protection allows Taco Bell to expand its brand presence without restrictions, potentially leading to multiple franchises operating in close proximity. Prospective franchisees should carefully consider this aspect, as it may impact market share and profitability due to increased local competition.

Competitors

Below are some of Taco Bell's key competitors in the Mexican sector.

Taco Rico or Taco Works

Franchisees

?

3
+
0%
0%
Investment

?

$155,000 - $341,000
Revenue

?

Upgrade

Mike's Red Tacos

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$640,000 - $1,988,000
Revenue

?

Upgrade

Mucho Burrito

Franchisees

?

1
+
n.a.
n.a.
Investment

?

$470,000 - $925,000
Revenue

?

Upgrade

District Taco

Franchisees

?

2
+
n.a.
n.a.
Investment

?

$734,000 - $1,458,000
Revenue

?

Upgrade

Chronic Tacos

Franchisees

?

29
+
-36%
-36%
Investment

?

$284,000 - $884,000
Revenue

?

Upgrade

Taco Cabana

Franchisees

?

6
+
0%
0%
Investment

?

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

?

Upgrade

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