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- 2023 Franchise 500 Rank
#154 Ranked #168 last year
- Initial investment
$603K - $2M
- Units as of 2022
369 6% over 3 years
Here’s what you need to know if you’re interested in opening a Taco John's franchise.
Established in 1969 in Cheyenne, Wyoming, Taco John’s began as a single taco stand. Soon after, they began franchising. Today, Taco John’s has grown into a multi-million dollar business. It is one of the most prominent Mexican chain restaurants in the United States, famous for coining Taco Tuesday® and catering to the tastes of new generations.
Why You May Want to Start a Taco John's Franchise
If you're a franchisee looking for an opportunity to own a Mexican fast-food business, Taco John’s may be the right choice for you. It may also be a smart investment for franchisees who want to own more than one unit—Taco John’s prefers franchisees who have experience running multiple businesses or franchises. Franchisees who have a background in restaurants and a passion for food could fit right into the Taco John’s business model, too.
Taco John’s has proven itself to be a competitive company. For decades, this Mexican food business has grown, establishing nearly 400 locations across the country.
Even though Taco John’s likes a franchisee with experience, the company still offers development support. They provide marketing strategies to help franchisees drive sales. Franchisees will receive multiple weeks of hands-on training and grand opening assistance from Taco John’s. The assistance does not end when your franchise opens, either. Instead, Taco John’s offers continual support throughout the lifetime of your franchise.
What Might Make Taco John’s a Good Choice?
Mexican-inspired flavors are increasingly popular among young people. The term "Taco Tuesday" has also made its way into common vernacular with the majority of the taco-loving population. When a franchisee associates themselves with the brand that coined the phrase, they may end up in the spotlight of taco-hungry generations.
The menu items, including potato oles and breakfast burritos, are largely unique. The restaurant also offers seasonal items on its menu. Aligning its mission to serve bold flavors, Taco John’s makes its dishes using fresh and authentic ingredients.
How to Open a Taco John's Franchise
Before you become a Taco John's franchisee, you will want to research your area. Though people outside of the Millennial and Gen X age brackets enjoy Mexican-inspired flavors, these two generations are the company's primary demographics. You'll also want to consider your potential competition in the area.
Taco John’s requires a drive-thru option in most of its restaurants. This is important to factor in if you aren't opening a mall, campus, or airport location. Taco John’s offers flexible floor plans for you to choose from, which can influence your location. Additionally, you should assess whether you can handle multiple sites.
Choosing Taco John’s means you have to be ready to jump into company training. The franchise offers on-the-job training and multiple weeks of support from franchise and restaurant experts. As you sign up as a franchisee, the company will assign a franchise official to you. They will help you set up your unit until it is operational.
As soon as your business is up and running, a regional business consultant will be on hand to guide you. Once you open your doors, it's taco time!
About Taco John's
- Franchising Since
- 1969 (54 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees throughout the US.
- # of Units
- 369 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Taco John's 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
- $603,000 - $1,964,000
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
- $1,000,000 - $500,000,000
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
- $500,000 - $500,000,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of 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
- 20 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
- Taco John's has relationships with third-party sources which offer financing to cover the following: 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
- 148 hours
- Classroom Training
- 22 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesRegional AdvertisingSocial MediaSEOEmail 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 Taco John's? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Taco John's landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Taco John's ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse franchises that are similar to Taco John's.
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