Taco Pros
Taco Pros offers a variety of Mexican foods including tacos, burritos, and tortas in its restaurants. Known for its diverse menu options, this franchise requires an initial investment of $466,500 to $593,600 and operates in the quick-service restaurant sector.
Taco Pros franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a typical Taco Pros Restaurant is from $466,500 to $593,600. This includes a mandatory payment of $45,000 to the franchisor or affiliate and an additional reservation fee if development rights are desired [p.1].
What is the initial franchise fee?
The initial franchise fee is $45,000 and it is non-refundable. This fee applies for the first Taco Pros Restaurant [p.12, p.81].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of Gross Sales, paid weekly by electronic funds transfer on or before Tuesday following the end of each week [p.81]. For advertising, you must contribute to the Taco Pros Advertising Fund at a rate not exceeding 4% of your Gross Sales [p.32], and also spend at least $1,000 per month on local advertising in addition to your contribution to the Advertising Fund [p.32].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, you have the right to renew the franchise for two successive renewal terms of 5 years each, provided you comply with all conditions set forth [p.79].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires the franchisor's written consent [p.160]. Additionally, a transfer fee equal to 50% of the current franchise fee must be paid to cover the franchisor’s costs and provide initial assistance to the transferee [p.161]. Good cause for refusal includes protecting the development rights, system, marks, reputation, and image [p.6].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement for good cause, such as failure to comply with lawful provisions of the franchise agreement and not curing such failures within a reasonable time [p.6(c)]. Additionally, if you do not locate a suitable site and sign a lease or acquire real estate for your restaurant within 150 days after signing the Franchise Agreement, or if you are not in full compliance with all terms and conditions of the Area Development Agreement, the franchisor has the right to terminate the agreement [p.38, p.41].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on net worth or liquid capital requirements for qualification as a franchisee.
Do I get an exclusive or protected territory?
You will receive territorial protections, but you will not have an 'exclusive territory.' You may face competition from other franchisees and from outlets owned by the company or its affiliates. The size and scope of your Protected Territory, if any, depend on the type of location approved for your Restaurant. This isn't specified in the excerpts for Non-Traditional Sites. [p.39, p.41]
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for up to 3 people at no additional charge, but you must cover expenses like travel, meals, lodging, and wages. Additional trainees require a $1,000 fee per person [p.35]. The training program lasts 4 weeks and is mandatory, offered at corporate headquarters or designated locations [p.35-36]. Ongoing support includes the Manual (147 pages), marketing materials, POS system programs, and other relevant instructional materials [p.36]. However, business model changes may occur without your consent and could require additional investments [p.4].
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 a franchisee is purchasing one. However, they do not make representations about future financial performance or past financial performance of company-owned or franchised outlets [p.51]. Financial performance information can be shared under specific conditions, such as providing actual records of an existing outlet or supplementing the information provided in Item 19 with possible performance scenarios [p.50].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the menu items and other products and services that the franchisor has expressly approved in writing [p.45]. You cannot deviate from their standards and specifications without first obtaining written consent. Additionally, you must purchase or lease all Items (including food and beverage items) solely from suppliers who demonstrate, to the franchisor's continuing satisfaction, the ability to meet their then-current standards and specifications [p.89] and [p.25]. The franchisor reserves the right to pre-approve suppliers and may require you to pay for evaluation and testing of new suppliers [p.89].