Taco Time
Taco Time offers traditional Mexican fast food through franchised restaurants. Known for its specialized menu items, it operates in the competitive quick-service restaurant sector.
About Taco Time
Taco Time is an American fast-food restaurant chain specializing in Mexican-American food. The chain has over 226 locations in the United States and 74 locations in Western Canada. It was founded in Eugene, Oregon, in 1960 by Ron Fraedrick.
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Taco Time franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a TacoTime franchise ranges from $155,650 to $555,300 for a non-traditional franchise unit and from $365,650 to $824,300 for a traditional franchise unit constructed as a freestanding restaurant. This includes the initial fees ranging from $16,500 to $33,500 for a non-traditional location and $31,500 to $61,000 for a traditional location [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on the type of restaurant. For traditional TacoTime restaurants, it is $30,000 for the first one and reduced to $17,500 for each subsequent traditional restaurant. For non-traditional restaurants, including co-brand locations, the initial franchise fee is $7,500 for the first one and reduced to $5,000 for each subsequent non-traditional restaurant. [p.31, p.375]
What are the ongoing royalty and advertising fees?
The ongoing fees include a Royalty Fee and an Advertising Fee, which are to be paid separately from those under the original brand franchise agreement [p.375]. However, specific amounts for these fees are not provided in the excerpts.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD excerpts, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified factors [p.95, p.486]. This provision also states that it does not prevent a franchisor from exercising a right of first refusal to purchase the franchise [p.95, p.486].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes failure to comply with lawful material provisions of the franchise agreement and not curing such defaults within a reasonable time [p.108, p.110]. Additionally, the franchisor may terminate without notice if the franchisee is adjudicated bankrupt, makes an assignment for the benefit of creditors, voluntarily abandons the business, or is convicted of violating laws related to the franchised business [p.108, p.110].
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 or protected territory. According to [p.100], [p.61], and other relevant excerpts, Kahala Franchising does not provide franchisees with any exclusive territory, meaning you may face competition from other franchisees, company-owned restaurants, or other competitive brands within the area.
What training and ongoing support does the franchisor provide?
The franchisor provides an initial Training Program consisting of In-Store Training (120 hours) and New Owner Training (40 hours). This program can be conducted either online or in person at designated locations. Additionally, the franchisor reserves the right to require further training if the franchisee is not operating the business according to their Systems Standards [p.232, p.68].
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 97 franchised stores open in the United States. However, this number does not specify how many have closed or been terminated; the excerpts only provide information on the current status of the franchises without detailing closures or terminations. [p.77]
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of existing outlets if you are considering purchasing one. Additionally, they may supplement the information provided in Item 19 with possible performance data at a specific location or under certain circumstances [p.77]. However, other than these instances, the franchisor does not make any financial performance representations and does not authorize its employees or representatives to do so either orally or in writing [p.78].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling only certain items; however, you may have to buy or lease specific items from the franchisor or a limited group of suppliers designated by them [p.3]. This could potentially be more expensive than sourcing similar items independently [p.3]. For supplies required by System Standards but not previously approved by the franchisor, you must submit sufficient information for approval and may need to pay for inspections and tests if requested [p.249] or [p.182].