Taco Pros Franchise in 2024: Costs, Fee & FDD
Considering investing in Taco Pros? Explore how this fast-casual franchise combines authentic Mexican flavors with growth potential. Learn about startup costs, franchise support, and why Taco Pros could be a strong addition to your portfolio.
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Taco Pros’ journey began in 2019 in Oak Park, IL, founded by Bhagyesh along with Master Chefs Cesar and Victor. With a combined 25 years of culinary experience, this trio was driven by a passion for creating quality food and delivering exceptional service. What started as a small venture quickly expanded, doubling in size as their reputation for authentic flavors spread. Their story is one of dedication and innovation, making Taco Pros a rising star in the fast-casual dining scene.
The core of Taco Pros’ offerings is built around authentic Mexican cuisine, with tacos taking center stage. Each dish is crafted with precision, blending traditional flavors with modern techniques to create a menu that appeals to a wide audience. Beyond tacos, they offer a variety of burritos, quesadillas, and other Mexican-inspired dishes. Their customer base ranges from local foodies to families and professionals seeking a quick, satisfying meal without compromising on quality.
Since its inception, Taco Pros has expanded beyond its original location, though it remains rooted in its commitment to quality and service. While the number of locations continues to grow, particularly in urban and suburban markets, Taco Pros remains focused on delivering the same authentic flavors that made them successful. Their reach continues to expand as they establish themselves as a go-to destination for Mexican cuisine.
Franchisees of Taco Pros benefit from a well-structured support system that includes comprehensive training, ongoing operational assistance, and marketing support. Whether you’re new to the restaurant business or an experienced operator, Taco Pros provides the tools needed to succeed. This level of support, along with their growing brand and loyal customer base, makes Taco Pros a promising opportunity for those looking to invest in the fast-casual dining sector.
Taco Pros Franchise Insights
- Taco Pros doubled the size of their original Oak Park, IL location within a short period, showcasing strong early demand and growth potential.
- Founded by seasoned professionals with 25 years of experience, the brand’s commitment to authentic flavors and high-quality service sets a strong foundation for success.
- The franchise’s menu is designed to appeal to a broad audience, with core items like tacos and burritos that attract both young food enthusiasts and families alike.
- With a growing number of locations, Taco Pros is capitalizing on the booming fast-casual dining market, particularly in urban and suburban areas where demand is high.
Taco Pros Franchise Key indicators
Total U.S. Units
19
Total Investment
$456K-$584K
How much does it cost to open a Taco Pros franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Taco Pros franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Taco Pros franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Taco Pros below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Franchise Fee | $35,000 | $35,000 |
| Location Assistance Fee | $0 | $300 per day |
| Construction Assistance Fee | $0 | $300 per day |
| Rent (per month) | $5,000 | $8,000 |
| Security Deposits | $5,000 | $10,000 |
| Leasehold Improvements | $200,000 | $250,000 |
| Equipment, Furniture, and Fixtures | $150,000 | $200,000 |
| Insurance | $3,000 | $5,000 |
| Permits and Licenses | $2,000 | $5,000 |
| Initial Inventory | $10,000 | $20,000 |
| Signage | $5,000 | $8,000 |
| Grand Opening Advertising | $10,000 | $10,000 |
| Architecture | $5,000 | $10,000 |
| Travel Expenses for Training | $5,000 | $10,000 |
| Professional Fees | $1,500 | $4,000 |
| Opening Assistance | $0 | $3,000 |
| Liquor Licensing | $0 | $10,000 |
| Additional Funds (3 months) | $20,000 | $40,000 |
| Total Estimated Initial Investment | $456,500 | $583,600 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
Opening a Taco Pros franchise or a similar fast-casual restaurant in the Mexican food industry requires careful financial planning. The following is a general overview of the required capital, liquid assets, and net worth, based on industry standards and similar franchises.
- Initial Investment The estimated total initial investment for opening a Taco Pros franchise typically ranges between $456,000 and $584,000. This figure includes expenses such as equipment, furnishings, signage, initial inventory, and other startup costs. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement Franchisees are generally required to have liquid assets (cash or easily accessible funds) of around $100,000 to $150,000. Liquid assets are essential to cover initial operating costs and ensure smooth business operations during the early stages.
- Net Worth Requirement The estimated net worth requirement for a franchisee is usually around $500,000 to $750,000. This includes total assets minus liabilities, providing a cushion for the financial stability and success of the franchisee.
How much does a Taco Pros franchise owner make?
Calculating the salary of a Taco Pros franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Taco Pros franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Taco Pros Revenue & Gross Sales
While specific median gross sales figures for Taco Pros are not publicly available, fast-casual Mexican restaurants typically achieve strong performance due to their popularity and growing market demand. Taco Pros’ focus on authentic flavors and rapid expansion suggest that the franchise is positioned well within the industry, likely reflecting a solid and competitive sales performance.
Which key factors impact the average revenue performance of Taco Pros franchisees?
The performance of U.S. franchisee median gross sales for Taco Pros is likely influenced by several key factors. First, the franchise’s emphasis on authentic, high-quality Mexican cuisine appeals to a broad customer base, which drives consistent traffic. The strategic location of each franchise also plays a crucial role, as areas with high foot traffic and a demand for fast-casual dining can significantly boost sales. Additionally, the strong brand reputation, built through a focus on exceptional customer service and a modern dining experience, helps retain loyal customers. Marketing efforts, both locally and on a broader scale, further contribute to drawing in new patrons, enhancing overall sales performance.
Taco Pros Franchise Operational Costs
When opening a Taco Pros franchise, understanding the key ongoing operational costs is crucial for effective financial planning. These costs directly impact the day-to-day running of the business and contribute to your overall profitability. Below are the primary operational expenses you should consider:
- Staffing Costs This includes wages, benefits, and any training expenses for employees, which can vary depending on the location and labor market conditions.
- Food and Beverage Costs As a restaurant, maintaining a steady supply of fresh ingredients is essential, and fluctuating prices in the food market can impact these costs.
- Utilities Expenses such as electricity, water, gas, and waste management are ongoing and can be significant, especially in a busy restaurant setting.
- Rent or Lease Payments The cost of your location will be one of the largest ongoing expenses, particularly in high-demand areas.
- Maintenance and Equipment Regular upkeep of kitchen equipment, dining areas, and other facilities is necessary to keep operations running smoothly.
By carefully managing these ongoing costs, you can maximize profitability and ensure the long-term success of your Taco Pros franchise.
Taco Pros Franchise Fees
When opening a Taco Pros franchise, it’s essential to factor in the specific fees that will be part of your ongoing financial commitments. These fees ensure that you receive the necessary support and resources from the franchisor while also contributing to the brand’s overall growth. Below are the primary fees you should be aware of:
- Royalty Fee Taco Pros requires a royalty fee of 6% of gross sales. This fee is payable weekly on Tuesday, or the next business day if Tuesday is not a business day, and is crucial for supporting the franchisor’s ongoing services and resources, such as operational support, brand development, and marketing initiatives.
- Advertising Fund Fee In addition to the royalty fee, there is an advertising fund fee set at 3% of gross sales, which is also payable alongside the royalty fee. This fee contributes to the brand’s national and regional marketing efforts, helping drive customer awareness and traffic to your franchise location.
- Additional Fees There are additional fees for training programs, technology, and other items provided by Taco Pros that may be applied.
Understanding and planning for these fees is vital to maintaining a strong financial foundation for your Taco Pros franchise. By incorporating them into your budgeting and operations, you can better manage your overall expenses and focus on growing your business successfully.
Taco Pros Franchise Earnings
While specific earnings data for Taco Pros franchises is not available, we can provide an informed overview based on industry standards and the characteristics of fast-casual Mexican food franchises. Typically, franchises in this sector benefit from strong customer demand due to the popularity of Mexican cuisine and the convenience of fast-casual dining. With a focus on authentic flavors and a well-established brand presence, Taco Pros has the potential to generate solid earnings, especially in locations with high foot traffic and a strong target demographic.
Additionally, the brand’s emphasis on quality ingredients, efficient operations, and consistent customer service can contribute to profitability by encouraging repeat business and positive word-of-mouth. Franchisees who effectively manage their operational costs and leverage the support provided by Taco Pros are well-positioned to achieve competitive earnings within the fast-casual industry. As with any franchise investment, the actual earnings will depend on various factors, including location, management, and market conditions.
How to Open a Taco Pros Franchise
Becoming a Taco Pros franchisee involves a structured process that ensures you are well-prepared and aligned with the brand’s goals and values. This journey takes you from the initial inquiry to the grand opening of your franchise location. Below is an overview of the steps involved:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application After your inquiry, you’ll be asked to complete a detailed franchise application. This application typically covers your financial background, experience, and suitability as a potential franchisee.
- Initial Meeting and Interview After reviewing the FDD, you may be invited to meet with the franchise development team or participate in an interview. This step allows both parties to assess the potential partnership and ensure mutual alignment.
- Site Selection and Approval If the partnership moves forward, the next step is selecting a suitable location for your Taco Pros franchise. The franchisor will typically assist you in identifying and approving a site that meets their criteria.
- Training Program Before launching your franchise, you will undergo a comprehensive training program. This training covers everything from daily operations to marketing strategies, ensuring you are fully equipped to manage your Taco Pros location successfully.
- Grand Opening Preparation As the final steps approach, you will work with the franchise team to prepare for your grand opening. This includes setting up the store, coordinating marketing efforts, and finalizing operational details.
- Launch and Start of Operations Once everything is in place, your Taco Pros franchise is ready to open! The franchisor will typically provide ongoing support during the early stages of operation to ensure a smooth and successful launch.
Pros & Cons
Pros
Authentic Niche: Taco Pros focuses on authentic Mexican flavors, tapping into a growing demand for high-quality, fast-casual dining options.
Rapid Growth Potential: With a strong foundation and rapid expansion from its original location, the brand shows promising growth potential, which could translate into strong returns for franchisees.
Diverse Menu Options: The menu caters to various dietary preferences, including vegetarian and vegan options, which broadens the customer base and attracts a diverse clientele.
Brand Appeal: The combination of authentic flavors and modern dining experience appeals to a wide range of customers, particularly in urban and family markets.
Cons
Newer Brand: As a relatively new franchise, Taco Pros may not have the same level of brand recognition or proven track record as more established fast-casual chains, which could pose a risk.
Market Saturation: Depending on the location, you may face competition from other well-known Mexican food franchises, which could impact sales and market share.
Dependence on Location: Success is highly dependent on choosing the right location, and a poorly chosen site could limit your customer base and profitability.
