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    You are at:Home » TACO BELL FRANCHISE: COSTS, FEES & EARNING STATS
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    TACO BELL FRANCHISE: COSTS, FEES & EARNING STATS

    June 5, 2024
    TACO BELL FRANCHISE
    • Liquid Capital: $750,000+
    • Net Worth Requirement: $1,500,000
    • Investment: $575,600 – $3,370,100
    • Franchise Fee: $25,000 – $45,000
    • Units in Operation: 7,500+
    • Founded: 1962
    • Franchising Since: 1964

    TACO BELL FRANCHISE: COSTS, FEES & EARNING STATS

    Taco Bell was founded in 1962 by Glen Bell in Downey, CA and he began franchising in 1964. The company has since expanded to over 7,000 locations worldwide.

    The Mexican-inspired fast-food restaurant is well-known for its tacos, nachos, burritos, and Crunch Wrap Supreme.

    In recent years, Taco Bell restaurants have been working to attract a wider audience by offering healthier options. Some of those options include vegetarian and vegan items at Taco Bell restaurants.

    In this article, we will discuss the cost, fees, and earnings statistics of Taco Bell franchise locations.

    IS TACO BELL A FRANCHISE OR CHAIN?

    Taco Bell Corp. is a fast-food franchise that specializes in Mexican-inspired cuisine. Taco Bell is owned by Yum! Brands, Inc., the same company that owns KFC and Pizza Hut. As a result, Taco Bell is often referred to as part of the “Yum! Brands family”.

    There are many differences between Taco Bell and other Yum! Brands locations and restaurants. For example, Taco Bell locations are generally smaller and focus more on drive-thru service.

    In addition, Taco Bell offers a wider variety of menu items than KFC or Pizza Hut. As a result, Taco Bell has carved out a distinct identity within the Yum! Brands restaurant family. TACO BELL FRANCHISE: COSTS, FEES & EARNING STATS

    HOW MANY TACO BELL FRANCHISES ARE THERE?

    There are currently over 7,500 Taco Bell stores worldwide. Most of these restaurants are located in California, Texas, Florida, and Ohio, with the United States having the most stores.

    In addition to traditional fast-food, Taco Bell also offers a variety of unique menu items, such as Doritos Locos Tacos.

    The franchise has expanded to nearly 30 countries worldwide. This international presence is another big sign of the brand’s continued success.

    read more ……. Burger King Franchise Cost 2024-25 | Procedure, Documents Required

    HOW MUCH DOES IT COST TO OPEN A TACO BELL FRANCHISE?

    If you’re thinking about opening a Taco Bell, there are a few things you need to know. The cost of a Taco Bell franchise can range between $575,600 – $3,370,100 and even more. However, this figure varies based on the restaurant’s location and building size, as well as construction, equipment, and inventory. It also includes costs associated with training new employees and marketing the restaurant. TACO BELL FRANCHISE: COSTS, FEES & EARNING STATS

    Taco Bell’s requirements for opening a franchise are a net worth of $1.5 million and liquid assets of $750,000. You’ll have to pay an ongoing royalty fee, which is 5.5%, and an advertising fund fee of 4.25% on gross sales.

    Of course, these are just some of the costs associated with opening a Taco Bell – you also have to factor in things like employee salaries, marketing, and other operating expenses.

    Taco Bell is one of the most popular fast-food franchises and their products are in great demand. If you are a fan of Mexican food and have the financial resources to pursue your venture, then a franchise could be a great opportunity for you.

    What is the Taco Bell franchise fee?
    Name of FeeLowHigh
    Background Check Fee (per person)$500$700
    Initial Franchise Fee$25,000$45,000
    First Unit Construction Services$27,250$27,250
    Optional Real Estate Services$10,000$37,250
    Permits, Licenses, Security Deposits$74,000$125,000
    Real Property$45,000$1,400,000
    Building/Site Construction$177,000$1,700,000
    Equipment/ Signage/ Decor/ POS$200,000$570,000
    Initial Inventory$7,000$10,000
    Grand Opening Expense$5,000$5,000
    Additional Funds – 3 months$40,000$60,000
    ESTIMATED TOTAL*$610,750$3,980,200

    Purchase of Existing Restaurants from the Franchisor or an Affiliate

    Name of FeeLowHigh
    Initial Franchise Fee$25,000$45,000
    Building, Equipment, Signs and Inventory$150,000$1,755,000 or more
    Any Leasehold or Other Real Property InterestsVaries 
    TOTAL PURCHASE PRICE$175,000$1,800,000 or more

    Other Fees

    Type of FeeAmount
    Grand Opening Expense$5,000 to be spent by franchisees for advertising and promoting the opening of the unit.
    Period Franchise Fee5.5% of the unit’s gross sales.
    Period Marketing Fee4.25% of the unit’s gross sales.
    Late ChargesThe lesser of 18% per annum or the highest rate permitted by New York law, plus the then-customary administrative charge.
    Digital Transaction Fee for Mobile, Web, Kiosk, Connect Me Drive Thru & Delivery Orders$0.19 per digital transaction.
    Gift Card Transaction Fee$0.19 per gift card transaction.
    Additional Trainee Fee$350 per person.
    Training MaterialsAs established by the franchisor.
    Cost of Audit of the Franchisee’s BooksAny and all costs incurred in connection with the inspection or audit, including reasonable accounting and legal fees.
    Transfer FeeA transfer of all or a portion of the franchisee’s interest in any unit is subject to a transfer fee. Minimum fees apply and are subject to increase for costs incurred by the franchisor, including but not limited to outside counsel fees, in connection with reviewing and effecting the transfer.
    Relationship Agreement and MBOA Legal FeesThe franchisor estimates the legal fees for its negotiation of a relationship agreement to be between $20,000 and $100,000, but may be higher.
    Reimbursement of Insurance ExpenseActual cost of insurance.
    Mid-Term Upgrade$168,000
    Successor FeesVaries by unit type
    Extension Fee$250 per month for 1-3 -months, $500 per month for 4-6 months, plus $1,000 for each additional month for 7+ months.
    De-identification CostsActual cost of de-identifying unit.
    Attorneys’ FeesPrevailing party in any litigation is entitled to reasonable attorneys’ fees and costs paid by the other party. Outside counsel fees may also be due in connection with review and approval of a transfer of interest.
    Liquidated DamagesIf the Franchise Agreement is terminated for certain specified reasons, franchisees must pay liquidated damages equal to the greater of 11% of unit’s gross sales for last 12 months of operation or $100,000.
    Development Fee (Development Agreement)If franchisees purchase existing units from the franchisor and enter into a Development Agreement, and fail to timely open required units, they must pay Taco Bell $45,000 and periodic payments of $4,231 until the actual opening date of each new unit or 10 years from the missed opening date, whichever first occurs.
    System-One Merchandising Program for Taco Bell Units or Multi-One Merchandising Program for KT Units$717 per quarter per restaurant.
    Franchise Business franchisee first magazine TACO BELL FRANCHISE
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