Taco Bell Express
Taco Bell Express offers affordable Mexican-style food from compact locations unsuitable for traditional units. Known for quick service and value, it operates in the fast-food industry.
Taco Bell Express franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Taco Bell Express Unit ranges from $319,850 to $1,078,200, including the $22,500 that must be paid to the licensor and an additional $27,250 for the first unit only, which is paid to an affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is $45,000 for each new restaurant. Of this amount, $10,000 is payable upon registration, and the remaining balance is due upon the groundbreak of the new restaurant [p.215, p.271].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is typically 5.5% of sales for traditional franchise agreements and usually 10% of sales for non-traditional units [p.134]. Advertising fees are not specified in terms of a fixed percentage or amount; the excerpts indicate there is no requirement to contribute to an advertising fund or form an advertising council [p.43].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement does not specify a term length [p.133], and typically does not afford franchisees the right to renew the same or obtain a successor franchise agreement following expiration. However, at the end of the term, a franchisee may request a successor franchise agreement, which TBC as manager may grant at its sole discretion [p.133].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you generally cannot transfer ownership of your franchise without good cause as specified by the franchisor [p.146]. However, the franchisor can exercise a right of first refusal if you wish to sell your franchise [p.146]. Additionally, if you are part of the Taco Bell Co-op and own multiple Units, selling some or all of them would also involve transferring shares in the Co-op, which cannot be sold to third parties but may be redeemed by the Co-op at their original purchase price [p.28].
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 the franchisee fails to cure such failure after being given written notice and a reasonable opportunity, which cannot exceed 30 days. [p.146]
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory under the License Agreement [p.44]. You may face competition from other franchisees or licensees, as well as from Units that the franchisor owns or other competitive brands they control [p.44].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial management training program that is a minimum of 7 weeks but can extend to 8 weeks depending on location. This includes web-based or e-learning, as well as on-the-job and classroom training. The training is conducted by certified restaurant training managers in approved company-owned restaurants. Tuition for this training is free for the franchisee and their manager, though additional people can be trained at a fee of $350 per person as of the last fiscal year. Ongoing support includes IT service desk support for certain hardware and software obtained from supported vendors, which incurs an annual fee. For multi-brand operations, additional training specific to other brands may be required. [p.37, p.41]
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 does not make any representations about future or past financial performance of company-owned or licensed Express Units, nor do they authorize their employees or representatives to make such claims [p.57]. However, if you are purchasing an existing Unit, the franchisor may provide actual records of that Unit's performance [p.57]. Additionally, the franchisor can provide financial performance information only if there is a reasonable basis in fact and it is included in the disclosure document, or if they provide actual records of an existing Unit being considered for purchase [p.57].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the food, beverages, and other products described in OneSource [p.24]. Additionally, you must purchase or lease certain items according to specifications from suppliers approved by the franchisor [p.3, p.24], including furniture, fixtures, equipment, smallwares, food, and paper products. This essentially means 100% of your purchases for these items must be made in accordance with their specifications [p.24].