Fuzzys Taco Shop
Fuzzys Taco Shop offers Mexican-inspired fast-casual dining with made-from-scratch favorites like tacos and burritos. Known for simple yet flavorful dishes, it operates in the competitive quick-service restaurant sector.
About Fuzzys Taco Shop
Fuzzy's Taco Shop is an American fast casual restaurant chain specializing in Baja-style Mexican cuisine. Serving breakfast, lunch and dinner, Fuzzy's operates more than 150 locations in 17 states.
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Fuzzys Taco Shop franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a traditional FUZZY'S TACO SHOP® Restaurant ranges from $647,000 to $1,555,500, which includes $55,400 to $55,600 payable to the franchisor or its affiliates. For a taqueria-style FUZZY'S TACO SHOP® Restaurant, the range is from $517,900 to $1,098,100, including $45,400 to $45,600 payable to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee for a Restaurant is $40,000 [p.13]. This fee is nonrefundable upon payment [p.13]. Lower initial franchise fees may apply to those who have signed a Franchise Development Agreement or are eligible for a development incentive [p.22, p.20].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of weekly Gross Sales, which is nonrefundable and continues throughout the term of the agreement [p.117]. Advertising costs are expensed as incurred by the company [p.219], but there is no specific mention of an ongoing advertising fee paid by franchisees.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement is typically granted for an initial term of ten years with an option to renew [p.196]. The document does not specify the exact conditions or process for renewal, but it implies that there is an option to renew after the initial term [p.196].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you may not sell or transfer your interest in the franchise agreement or the assets of your restaurant without the franchisor's prior written consent [p.140]. This includes both individual owners and business entities where no Owner may transfer their equity interest without such consent [p.140]. Good cause is required for the franchisor to refuse a transfer, but this does not prevent them from exercising a right of first refusal [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if there is a failure by the franchisee to comply with any lawful provision of the franchise agreement and such failure is not cured within a reasonable time after being given written notice, which cannot exceed 30 days [p.258]. Additionally, under Virginia law, cancellation without "reasonable cause" is unlawful, and provisions for termination must comply with the Virginia Retail Franchising Act [p.257].
What financial requirements — net worth and liquid capital — do I need to qualify?
The financial condition required for qualification is not explicitly detailed in terms of specific net worth or liquid capital amounts. However, it is stated that you must satisfy the franchisor's then-current criteria for franchisees, which may include your financial condition [p.75]. This indicates a need to demonstrate financial soundness, but exact figures are not provided in these excerpts.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory. However, after identifying an Approved Location for your Restaurant, the franchisor will designate a Protected Area around it, typically encompassing a total population of approximately 50,000 people within a specified radius [p.34]. This Protected Area helps to minimize competition from other franchisees and outlets controlled by the franchisor in that specific geographic region.
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program for your Designated Manager and up to two additional individuals at no charge [p.120]. For opening assistance, they offer varying levels of support depending on how many restaurants you open; for the first or second restaurant, 4 members of their support team for up to 10 days are provided, while for subsequent restaurants, you may need to provide your own trainers after meeting certain standards [p.30]. Additional training and support can be requested at a cost of $500 per trainer per day plus expenses if the franchisor deems it necessary or if you request such assistance [p.30].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one, but generally does not make financial performance representations about future financial performance. If you receive any other financial performance information or projections, you should report it to the franchisor and relevant authorities as specified [p.51].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only the products and services authorized by the franchisor [p.41], which includes specific food items, beverages, merchandise, and other goods listed in the FDD [p.124]. You must purchase these from Designated Suppliers approved by the franchisor [p.123, p.124]. This applies to both the products you sell and the supplies needed for your operations.