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TacoTime Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a TacoTime Franchise?
To open a TacoTime franchise, you will need to prepare for a range of initial investment costs. The franchise fee is set at $30,000, while the total investment can vary significantly, ranging from $30,000 to $787,800. It's essential to have cash readily available, with requirements between $150,650 and $787,800. Additionally, prospective franchisees should have a net worth of at least $150,000 to $500,000 to qualify. Understanding these financial commitments is crucial before moving forward in the franchise process.
What Are the Ongoing Fees Associated with a TacoTime Franchise?
When operating a TacoTime franchise, there are ongoing fees that you need to budget for. Franchisees are required to pay a royalty fee of 6% on gross sales, along with a marketing fee of 1%. These fees contribute to the overall brand support and marketing initiatives that TacoTime implements. Being aware of these costs can help you plan your financial strategy and maintain profitability in your franchise operations.
What Is the Financial Performance of a TacoTime Franchise?
TacoTime franchises have shown promising financial performance metrics. The average annual revenue per unit is approximately $843,427, with a median of $846,552. The range of annual revenue can vary widely, from a low of $447,425 to as high as $1,555,156. This potential for revenue, coupled with a breakeven time of about 12 months and an investment payback period of 14 months, makes TacoTime an attractive option for aspiring franchisees looking for a solid return on investment.
How Many TacoTime Franchises Are Currently Operating?
As of 2023, TacoTime has 99 franchised units in operation, with a slight decrease from 108 units in 2021 and 105 in 2022. The brand has recently opened its first corporate unit in 2023, indicating a potential shift in strategy or expansion efforts. Understanding the current landscape of TacoTime franchises can help you gauge the brand's stability and growth potential as you consider your investment options.
TacoTime Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
TacoTime Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 108 | 105 | 100 |
| Net Change YoY | -3 | -5 | |
| Franchised Units | 108 | 105 | 99 |
| Net Change YoY | -3 | -6 | |
| Corporate Units | 0 | 0 | 1 |
| Net Change YoY | 0 | 1 |
Investment Overview
The TacoTime franchise offers a range of investment options, with a low initial investment of $30,000 and a high of $787,800. To start a franchise, entrepreneurs need to be prepared with a cash reserve between $150,650 and $787,800, along with a net worth of $150,000 to $500,000. This flexibility allows aspiring franchisees to assess their financial capacity and choose a suitable entry point into the business.
Franchise Fees
The initial franchise fee for TacoTime is set at $30,000. Franchisees are also required to pay a royalty fee of 6% on gross sales and a marketing fee of 1%. These fees contribute to the ongoing support and marketing initiatives provided by the franchisor, ensuring that franchisees benefit from brand recognition and operational guidance.
Revenue Potential
TacoTime units have demonstrated strong financial performance, with an average annual revenue of $843,427 and a median revenue of $846,552 per unit. The revenue ranges from a low of $447,425 to a high of $1,555,156, indicating significant earning potential for franchisees. This variability allows potential investors to evaluate different market conditions and their impact on profitability.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is estimated at around 14 months, making TacoTime a relatively quick-return franchise opportunity. These timelines are crucial for prospective franchisees to understand their financial outlook and plan for future growth.
Franchise Growth
TacoTime has experienced a gradual decline in the number of franchised units, from 108 in 2021 to 99 in 2023, alongside the establishment of one corporate unit. This trend presents both challenges and opportunities for prospective franchisees, as it may indicate market saturation or the need for revitalization strategies in certain regions.
Operational Insights
The average operating expenses for TacoTime units total approximately $194,664 annually, with significant costs in wages, rent, and promotional funds. Understanding these expenses is vital for franchisees to manage their budgets effectively and optimize profitability. By keeping operational costs in check, franchisees can enhance their EBITDA, which averages around 18.62% of revenue.
Frequently Asked Questions
The initial investment for a TacoTime franchise ranges from $30,000 to $787,800, depending on various factors such as location and setup requirements.