Taco Bell Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

7349
+
4%
4%
Investment required

?

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

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$45,000
Royalty fees

?

5.50%
+
4.25%
Operating Profit

?

n.a.

Pro
Franchisees

?

7349
+
4%
4%
Investment required

?

$935,000 - $1,815,000
Franchise fee

?

$45,000
Royalty fees

?

5.50%
+
4.25%
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

Taco Bell: Revolutionizing Fast-Food with Mexican-Inspired Innovation

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

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.

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

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

7349

+
4%
4%
No growth
New

$45,000

$935,000

-

$1,815,000

n.a.

$0

Pro

n.a.

Pro

n.a.

Pro

Food & Beverage

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.

Number of units

2025
Franchised units

7056

7198

7349

Company-owned units

464

483

498

Total units

7520

7681

7847

Competitors

Barrio Burrito Bar

Investment required
$432,000
-
$773,000
Franchisees
0
+
n.a.
n.a.

TacoTime

Investment required
$156,000
-
$824,000
Franchisees
97
+
-8%
-8%

Taco John’s

Investment required
$390,000
-
$2,120,000
Franchisees
333
+
-8%
-8%

Rusty Taco

Investment required
$532,000
-
$1,100,000
Franchisees
33
+
10%
10%

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A comprehensive and transparent look at franchising finances. The inclusion of profit margins and disclosure documents offers insights you can’t find elsewhere. Essential for anyone considering a franchise investment.

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