
Taco Bell
Mexican-inspired food- 2022 Franchise 500 Rank
-
#1 Ranked #1 last year
- Initial investment
-
$576K - $3.4M
- Units as of 2021
-
7,567 9.6% over 3 years
Here’s what you need to know if you’re interested in opening a Taco Bell franchise.
From a hot chalupa to their signature sauce, Taco Bell is the largest purveyor of Mexican cuisine in the world. As one of the top quick-service restaurant franchises, Taco Bell is known for serving Mexican-style food quickly and at a low price. You can get their tasty tacos at over 7,000 locations across 30 different countries.
Taco Bell is a subsidiary of Yum! Brands, Inc., which also owns several other recognizable franchises. Yum! Brands Inc. operates over 43,000 restaurant locations across 135 nations and territories.
Taco Bell was founded in 1962 and began franchising two years later. It has since grown into one of the most recognizable brands in the world.
Why You May Want to Open a Taco Bell Franchise
Taco Bell may be one of the best franchises to own. To qualify to open a Taco Bell franchise, you need to meet the company’s minimum net worth and liquid capital requirements. You should also prepare yourself for an initial investment made up of a franchise fee and other startup costs. In addition, you need not forget about ongoing fees that will include royalty and advertising fees.
What May Make a Taco Bell Franchise a Good Choice?
Taco Bell has been ranked near the top of Entrepreneur’s Franchise 500 list many times in recent decades. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
Taco Bell is one of the most popular and recognizable brands in the U.S., which means that you may have a leg up on the competition. They're also aggressively expanding into the global market, which may create a great opportunity for entrepreneurs around the world to open a Taco Bell franchise close to home. Whether you live in or outside of the U.S., Taco Bell may be one of the best franchise organizations to open.
How Do You Open a Taco Bell Franchise?
First, you have to submit your application. If you're approved, then you'll participate in the Taco Bell franchise training program. This program will likely take several weeks. After that, they will begin construction on the new building. Taco Bell locations can require multiple months to complete construction.
Once your Taco Bell franchise location is ready to go, you'll be responsible for ensuring everything runs smoothly leading up to the opening of the restaurant. You can hire a manager to handle these duties, but if you decide to manage it yourself, one of the most important steps is staffing your restaurant.
Taco Bell may be easy to hire for. Because of this, many of your employees are likely to be young and new to the workforce. With the caveat that ages differ in some states, you can hire employees as young as 16 in most places in the U.S. After hiring some staff, you can begin preparing for your grand opening.
And that's it! Taco Bell strives to make opening a new franchise as seamless as possible. Once you have your restaurant staffed and open for business, you can proudly call yourself the owner of a brand new Taco Bell franchise.
Company Overview
About Taco Bell
- Industry
- Food
- Related Categories
- Mexican Food
- Founded
- 1962
- Parent Company
- Yum! Brands Inc.
- Leadership
- Mark King, CEO
Franchising Overview
- Franchising Since
- 1964 (58 years)
- # of employees at HQ
- 900
- Where seeking
-
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees in the following international regions: Asia, Australia/New Zealand, Middle East, Europe (Eastern), Europe (Western), Central America, Canada, South America
- # of Units
- 7,567 (as of 2021)
Franchisor Information
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Taco Bell franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $25,000 - $45,000
- Initial Investment
- $575,600 - $3,370,100
- Net Worth Requirement
- $1,500,000
- Cash Requirement
- $750,000
- Royalty Fee
- 5.5%
- Ad Royalty Fee
- 4.25%
- Term of Agreement
- 25 years
- Is franchise term renewable?
- No
Financing Options
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Taco Bell has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 400 hours
- Classroom Training
- 8 hours
- Additional Training
- Additional training available
- Ongoing Support
-
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
-
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Operations
Additional details about running this franchise.
- Is absentee ownership allowed?
- No
- Can this franchise be run from home/mobile unit?
- No
- Can this franchise be run part time?
- No
- Are exclusive territories available?
- No
Work with a free franchise expert and get what you need to start a Taco Bell franchise.
Franchise 500 Ranking History
Compare where Taco Bell landed on this year’s Franchise 500 Ranking versus previous years.
Stock History for Taco Bell
Ticker Symbol for Taco Bell: YUM
Additional Rankings
Curious to know where Taco Bell ranked on other franchise lists? Find out below.
Ranked #1 in 2022
Franchise 500 Ranking
Ranked #6 in 2021
Fastest-Growing Franchises
Ranked #9 in 2020
Top Global Franchises
Ranked #9 in 2021
Fastest-Growing Franchises (U.S. & Canada)
Ranked #1 in Mexican Food in 2021
Best of the Best
Ranked #1 in Mexican Food in 2021
Top Food Franchises
Ranked #1 in 2022
#1 in Mexican Food Category
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