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- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$294K - $886K
- Units as of 2022
49 10% over 3 years
Here’s what you need to know if you’re interested in opening a Chronic Tacos franchise.
Filling stomachs since 2002, Chronic Tacos infuses authentic Mexican recipes with a laid-back, creative, and unique atmosphere straight out of Southern California.
Serving customers like friends, the Chronic Tacos menu may include staples of Mexican cuisine, including burritos, bowls, quesadillas, fully loaded Chronic Fries, and, of course, their signature tacos. With over 40 locations in the U.S., Canada, and Japan, Chronic Tacos is spreading the combination of great food and Southern California vibes they call “the taco life” to hungry customers worldwide.
Why You May Want To Start a Chronic Tacos Franchise
Franchisees are expected to serve innovative Mexican recipes with a Southern California twist while offering a personal customer experience. Although no prior business experience is necessary, having a background in restaurant management could prove beneficial.
Chronic Tacos franchisees should share the company’s belief that awesomely creative food and a chill atmosphere go hand-in-hand. As such, Chronic Tacos franchisees should adapt to the innovative brand as it continues to experience success. Being familiar with the distinctive So-Cal culture can only help franchisees do their part in spreading the taco life.
What Might Make a Chronic Tacos Franchise a Good Choice?
The pride of Chronic Tacos may be the authenticity of their Mexican grilled food, thanks to third-generation recipes. Honoring their Southern California roots, customers should be treated to a slice of the taco lifestyle with every experience, as mouth-watering menu items, and friendly service keeps them coming back time and time again. Franchisees, therefore, will need to ensure that both the food and the overall laid-back vibes Chronic Tacos has become known for remains just as irresistible for customers as their first visit becomes their second, third, and more.
To be part of the Chronic Tacos franchise team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company’s set net worth and liquid capital requirements.
Chronic Tacos has partnered with third-party financial lenders that may help cover the costs of the franchise fee, startup, equipment, inventory, accounts receivable, and payroll.
How To Open a Chronic Tacos Franchise
Upon approval of a Chronic Tacos franchise request, potential franchisees may speak to the company leadership before reviewing the Franchise Disclosure Document and meeting the Chronic Tacos team. Once awarded a franchise and signing the Chronic Tacos franchise agreement, you may secure your location and commence construction and training.
The Chronic Tacos franchise team will assist new franchisees with choosing a location, designing their restaurant, construction guidance, ordering equipment, marketing, and graphic design. New franchisees with Chronic Tacos will also receive a complete training program before opening. The support doesn’t end once you open the doors to your new location.
Franchisees with Chronic Tacos may receive support from a field support manager, quality and food safety, marketing, franchise support, and access to a franchise advisory council. Just don’t be surprised if you find some tacos at your meetings.
About Chronic Tacos
- Franchising Since
- 2006 (17 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees throughout the US.
This company is offering new franchisees worldwide.
- # of Units
- 49 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Chronic Tacos 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
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $294,000 - $886,000
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 20% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
- Third Party Financing
- Chronic Tacos 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
- 157 hours
- Classroom Training
- 43 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Ad TemplatesRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Chronic Tacos? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Chronic Tacos landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Chronic Tacos ranked on other franchise lists? Find out below.
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