Start a TacoTime Franchise in 2025

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $145K - $637K

Units as of 2020: 237 13% over 3 years

TacoTime was founded in Eugene, Oregon, by Ron Fraedrick. He started running the first restaurant close to the University of Oregon, at 13th Avenue and High Street, in 1959. The first TacoTime franchise opened in Tacoma, Washington in 1962. TacoTime expanded to over 45 restaurants in seven Western states during the 1970s.

The first international TacoTime franchise opened in 1978 in Lethbridge, Alberta, Canada. TacoTime Northwest obtained the rights to license, franchise, and operate the TacoTime idea freely in 1979. Taco Time Northwest serves Western Washington to the border between Canada and the United States, as well as Eastern Washington cities.

TacoTime has grown since the late 1970s, holding more than 200 franchises across Canada and the U.S.. In 2003, Kahala Brands of Scottsdale, Arizona, bought the franchise.

Why You May Want to Start a TacoTime Franchise

Restaurant experience is not a must in order to open a TacoTime franchise. Still, you will need to have a demonstrated performance history of managerial experience, an entrepreneurial spirit, and a willingness to follow a well-established business model.

The TacoTime team will advise you through all site selection stages, lease negotiation, construction, training, and the grand opening of your franchise. They will also offer continuing operations process support and marketing, including meetings and conventions, security, field operations, and advertising..

A TacoTime store offers a small range of operations. It makes finding the ideal place for your TacoTime franchise relatively easy, and it makes for a simple store to clean and operate. You will need to hire a staff of at least 15 people, who you will train to keep the quality of TacoTime products as high as possible. At the same time, you will make sure your customers have pleasant experiences in your store with yummy food.

What Might Make TacoTime a Good Choice?

You should make sure you're financially ready with enough liquid capital and net worth available to cover the franchise fee and other startup expenses as a franchisee. These might include continuing royalty percentages and a potential renewal fee. You should also have a good credit score.

In addition, TacoTime charges advertising fees of gross sales. These fees go to national marketing, local restaurant marketing, and brand building. Your TacoTime representative will provide additional information as you operate your location.

How to Open a TacoTime Franchise

As you decide if you wish to open a TacoTime franchise, make sure you take time to explore the opportunity. Research the business and your local area to see if a franchise would do well in your community and location. While competition is healthy, a location that features other Mexican food restaurants may not be the optimal place to open a TacoTime franchise.

After submitting an inquiry with TacoTime, a franchise representative may call you to evaluate your franchisee requirements and the ideal location for you. If your request is accepted, the franchise representative will talk you through the particulars of the disclosure document.

After being confirmed as a franchisee, you will sign a contract before you start operating a TacoTime franchise. You will spend dozens of hours in the classroom to train for your opening, as well as upwards of 100 hours training on the job to understand how best to operate your store.

Company Overview

About TacoTime

Industry	Food
Related Categories	Mexican Food
Founded	1958
Parent Company	Kahala Franchising LLC
Leadership	Eric Lefebvre, CEO
Corporate Address	9311 E. Via De Ventura Scottsdale, AZ 85258
Social	Facebook, Twitter, Instagram

Business Overview

Franchising Since	1961 (64 years)
# of employees at HQ	227
Where seeking	This company is offering new franchises in the following US states: This company is offering new franchises in the following international regions:
# of Units	237 (as of 2020)

Information for Franchisees

Here's what you need to know if you're interested in opening a TacoTime 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.	$7,500 - $30,000
Initial Investment 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.	$144,650 - $636,800
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.	$250,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$160,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	20% off franchise fee
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.	6%
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.	4%
Term of Agreement 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.	10 years
Is franchise term renewable?	Yes

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	TacoTime has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory

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	120 hours
Classroom Training	40 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Field Operations Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	Yes
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.	No
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.	No
# of employees required to run	15-20
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.	Yes