Taco Cabana Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

6
+
0%
0%
Investment required

?

$1,267,000 - $2,776,000
Revenue (AUV)

?

$1,452,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$45,000
Royalty fees

?

5.00%
+
4.00%
Operating Profit

?

n.a.

Pro
Franchisees

?

6
+
0%
0%
Investment required

?

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

?

$45,000
Royalty fees

?

5.00%
+
4.00%
Revenue (AUV)

?

$1,452,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

Taco Cabana: Bringing Bold Tex-Mex Flavor to Every Meal

Founded in 1978 by Felix Stehling in San Antonio, Texas, Taco Cabana began as a humble taco stand in a repurposed Dairy Queen building. The restaurant's open-air patio concept and 24-hour service quickly garnered a loyal following, setting the stage for its expansion. Today, Taco Cabana is headquartered in San Antonio and operates numerous locations across Texas.

In 1990, Taco Cabana launched its franchising program, allowing the brand to extend its reach beyond Texas. The franchise opportunity is designed by franchisees for franchisees, offering a scalable, efficient model with strong unit economics and comprehensive support.

Taco Cabana's menu features a variety of Tex-Mex favorites, including tacos, burritos, quesadillas, and their signature margaritas. The brand differentiates itself through its commitment to fresh, handmade food and a vibrant, patio-style dining experience.

Under the ownership of YTC Enterprises, LLC, Taco Cabana continues to innovate and expand, maintaining its status as a beloved Tex-Mex destination.

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 $35,000 - $45,000
Grand Opening Advertising $10,000
Real Estate $25,000 - $150,000
Construction/Leasehold Improvements $635,000 - $1,685,000
Travel and Living Expenses While Training $9,500 - $14,000
Furnishing, Fixtures, Equipment $274,000 - $322,000
Signage $60,000 - $155,000
Initial Inventory $25,000 - $30,000
Miscellaneous Opening Costs $100,000 - $180,000
Register or Point of Sale System $18,000 - $50,000
Additional Funds - 3 Months $75,000 - $135,000
Total $1,266,500 - $2,776,200

Franchise Disclosure Document

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Competitors

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

6

+
0%
0%
No growth
New

$45,000

$1,267,000

-

$2,776,000

n.a.

$1,452,000

Pro

73.3%

Pro

n.a.

Pro

Food & Beverage

Training

Taco Cabana provides an extensive training program designed to equip franchisees and their staff with the necessary skills and knowledge to operate a successful restaurant. The training is structured in several phases:

  1. Initial Training Program (ITP)
    Before opening, the Operating Principal, General Manager, and two other designated managers must complete the ITP. This program may be held at Taco Cabana-operated facilities, designated training centers, or online, and includes certification in ServSafe food safety. Attendance is required and all associated costs such as travel and lodging are borne by the franchisee.
  2. Franchise Operator Training Activities
    This includes in-restaurant, virtual, and classroom sessions tailored to operational roles. Topics cover shift leadership, general management, new product launches, equipment, and operational initiatives. Each segment has designated hours with both theoretical and practical components.
  3. Opening Assistance
    At the time of launch, Taco Cabana may provide in-person help with training staff and setting up operations, depending on the franchisee’s needs and the availability of corporate staff. Additional support beyond standard assistance may incur fees.
  4. Post-Opening and Ongoing Training
    After opening, Taco Cabana offers continued consultation and updated training through various means including site visits, electronic communication, webinars, and printed materials. This ensures franchisees stay aligned with evolving operational standards and marketing strategies.

Territory Protection

Taco Cabana provides limited territory protection through what it terms a “Protected Area.” In urban regions, this typically spans four city blocks in each direction from the franchise’s front door.

In suburban and rural areas, protection may include a surrounding population of at least 30,000 residents or a one-mile radius, respectively, within which Taco Cabana will not authorize or operate another restaurant, assuming the franchisee remains in compliance.

However, this protection comes with significant exceptions. Taco Cabana reserves the right to operate in the Protected Area through venues like airports, universities, military bases, and other captive market locations.

Number of units

2025
Franchised units

6

6

6

Company-owned units

143

143

140

Total units

149

149

146

Competitors

Barrio Burrito Bar

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

Talkin' Tacos

Investment required
$271,000
-
$575,000
Franchisees
0
+
n.a.
n.a.

TacoTime

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

Taco Bell

Investment required
$935,000
-
$1,815,000
Franchisees
7349
+
4%
4%

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