About Fuzzy’s Taco Shop Franchise
Fuzzy's Taco Shop is a Baja style fast casual restaurant franchise offering made from scratch Mexican favorites under the Dine Brands Global umbrella.
Franchising since 2008, the brand serves a craveable menu of tacos, burritos, salads, traditional Mexican dinners, and sandwiches alongside its signature sauces, all prepared fresh and served in a laid back atmosphere.
The initial franchise fee is $40,000 for a traditional restaurant or $30,000 for a smaller taqueria format.
Fuzzy’s Taco Shop Franchise Cost & Fees
Minimum Investment
$635K
Average Investment
$1.1M
Maximum Investment
$1.6M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 for a Traditional Restaurant or $30,000 for a Taqueria Restaurant | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales (Development Fund) | National brand fund |
| Total Investment Range | $635,000 – $1,614,600 | Includes build-out, inventory, working capital |
The investment range of $635K–$1.6M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (2% of Gross Sales (Development Fund)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Rent Security Deposits (1-2 months), Utility Deposits, and Business Licenses | $10,000 | $20,000 |
| Architect and Design Fees | $10,000 | $18,000 |
| Leasehold Improvements | $300,000 | $900,000 |
| Furniture, Fixtures, and Signage | $44,000 | $95,000 |
| Equipment and Smallwares | $112,500 | $300,000 |
| Point of Sale, Computer, and Security Systems | $32,000 | $46,100 |
| Office Equipment and Supplies | $1,000 | $2,500 |
| Professional fees | $2,500 | $15,000 |
| Initial Sauce Inventory | $400 | $600 |
| Other Initial Inventory | $27,600 | $42,400 |
| Insurance | $12,000 | $25,000 |
| Pre-opening training expenses | $8,000 | $25,000 |
| Grand Opening Advertising | $15,000 | $15,000 |
| Additional Funds (3 months) | $20,000 | $70,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Either (i) 50% of our then-current initial franchise fee if transferee is not a current franchisee, or (ii) $7,500 if transferee is a current franchisee. |
| Renewal Fee | $5,000 |
| Technology Fee | $300 to $455 per month |
| Audit Fee | Cost of audit |
| POS Support Fee | $110 per month, plus $10 per month for each terminal |
| Mobile App, Online Ordering, & Loyalty Fee | $170 to $190 per month depending on package you select |
| Managed Network Services | $450 to $550 per month depending on package you select |
| Site Evaluation Fee | $0 (currently) |
| Opening Assistance | $500 per trainer per day, plus reimbursement of our travel, lodging, and dining costs |
| Additional/Remedial Training | $500 per trainer per day, plus reimbursement of travel, lodging, and dining costs |
| Relocation Fee | $2,500 |
| Supplier Testing Costs | Reimbursement of our costs and expenses for inspection and testing |
| Manual Replacement Fee | $100 |
| Quality Assurance Reaudit Fee | Reimbursement of our expenses |
| Food Safety Reinspection Fee | $300 |
| Insurance premium | Reimbursement of our cost of the premium plus administrative fee equal to 10% of the annual premium |
| Indemnification | An amount equal to the value of all losses and expenses that we incur |
| Nonsufficient Funds Fee | not to exceed $100 (currently, $100) |
| Guest Relations Chargeback | Reimbursement of our costs. |
| Interest/Late Fee | The lesser of 18% per year or the highest rate of interest permitted by the jurisdiction |
| Collection Fees and Costs | Reimbursement of our costs and expenses incurred in enforcing the agreement |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial training program (classroom and on-the-job) for Designated Manager and up to 2 additional individuals. The estimate for pre-opening training expenses covers 4 weeks for the Designated Manager and up to two employees. |
| Classroom Training | 12 hours |
| On-the-Job Training | 188 hours |
| Training Location | Corporate headquarters in Irving, Texas (classroom) and affiliate-owned Restaurants in North Texas (on-the-job). |
| Additional Training | Franchisor may charge a reasonable tuition for additional courses/programs. Remedial training may be required based on restaurant performance, with fees ($500 per trainer per day) and reimbursement of expenses. Principal Owner may also be required to attend initial or remedial training. Periodic conferences are mandatory for Designated Manager. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area |
| Exclusive Territory | No |
| Territory Size | between 1 mile and 3 miles long radius |
| Description | A geographic area surrounding the Restaurant, described as a radius (typically 1-3 miles) or by ZIP codes/geographic boundaries. Excludes "Closed Markets" (e.g., airports, malls, hospitals) where franchisor or affiliates may operate. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 2 additional ten-year successor terms |
| Renewal Fee | $5,000 |
| Renewal Conditions | Provide notice; may not be in default of Franchise Agreement or any other agreement; must renovate and modernize Restaurant to conform to our then-current image; you and employees must be in compliance with our then-current training requirements; you must have the right to possess your Approved Location or have secured a substitute location; you and all guarantors must sign a general release (subject to applicable law); must have operated substantially in compliance with the Franchise Agreement during the term; pay our then-current fee and sign our then-current form of Franchise Agreement, which may contain terms and conditions materially different than your original Franchise Agreement. |
| Transfer Fee | Either (i) 50% of our then-current initial franchise fee if transferee is not a current franchisee, or (ii) $7,500 if transferee is a current franchisee. |
| Transfer Conditions | Notice to us prior to transfer; all monetary obligations must be satisfied; you must be in full compliance with the Franchise Agreement and all other agreements; you and each owner must sign our then-current transfer agreements and documentation, which will include a general release (subject to applicable law); the transferee must meet our criteria for new franchisees; the transferee must sign our then-current form of Franchise Agreement for the remainder of the franchise term left on your agreement; the transferee must refurbish the Restaurant within 45 days of transfer approval; you must agree to remain liable for all pre-transfer obligations; the transferee must comply with our then-current training requirements; the landlord allows transfer of the lease; the economic terms of the transfer may not, in our opinion, materially and adversely affect the post transfer viability of your Restaurant; you provide copies of all transfer documents; you show operational transition of Restaurant, including insurance, contracts and licenses. |
| Termination for Cause | Your failure to pay monies owed to us, our affiliates, or your trade creditors within 10 days after delivery of written notice; misuse of the Marks, our copyrighted works or other intellectual property not cured within 5 days after delivery of written notice; Restaurant is cited for violation of health, sanitation, or safety laws and not cured within 3 days after receipt of citation; failure to comply with any other provision of the Franchise Agreement with 30 day cure period (except as described in (h) below). Automatic termination without notice upon certain bankruptcy or insolvency-related events, foreclosure or lien against assets, failure to identify/open restaurant when required, abandonment, failure to complete initial training, false/misleading representations, covenant violations, consecutive quality assurance audit failures, unauthorized transfers, immediate health/safety concern, termination of other agreements, three or more default notices in 24 months. |
| Non-Compete Period | During the term and for a two-year period following termination or expiration |
| Non-Compete Details | During the term, neither you nor any owner may be involved in any taco shop or other Mexican-style restaurant. For a two-year period following termination or expiration of the franchise, neither you nor any owner may be involved in any taco shop or other Mexican-style restaurant that is located (1) at location of any former Restaurant, (2) within the former Protected Area, or (3) within 25 miles of any other Restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee (or Principal Owner) may elect not to supervise full-time, provided a qualified Designated Manager is retained. Designated Manager must devote full-time and meet qualifications. |
| Required Suppliers | Franchisees must purchase proprietary sauce from Fuzzy’s Retail (an affiliate) via an approved distributor. Other items like fixtures, furniture, equipment, signs, décor, food products (special recipe), fountain/bottled beverages, alcoholic beverages, uniforms, merchandise, advertising materials, gift certificates, stationery, business cards, contracts, forms, bags, packaging, supplies (bearing Proprietary Marks), Computer System, advertising/marketing services (loyalty/mobile apps, public relations), and other required products/services must be purchased from designated or approved suppliers. |
| Supply Restrictions | Franchisees must purchase proprietary sauce from Fuzzy’s Retail. For other items, they must meet franchisor's standards and may be required to purchase from designated or approved suppliers. Unapproved sources require franchisor approval, which involves inspection, testing, and reimbursement of costs. Franchisor may reject new suppliers if an exclusive supplier is already designated. |
| Franchisor Revenue from Suppliers | During the 2022 fiscal year, FTO's revenue from required purchases/leases was $1,104,165 (6.7% of total revenues). Fuzzy's Retail's revenue from required purchases/leases was $1,329,000 (100% of total revenues). Rebates are received from soft-drink vendors ($0.10 to $7.00 per gallon), sponsors for franchisee conferences ($2,500 to $10,000 per vendor), and certain food product suppliers ($0.02 per case). |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither we nor any of our affiliates offer direct or indirect financing. Neither we nor any of our affiliates will guarantee your lease, note, or other obligations. |
Fuzzy’s Taco Shop Franchise Earnings — Item 19
Average Revenue
$1.8M
Median Revenue
$1.6M
Revenue Range
$631K – $4.8M
Sample Size
118 units
Past financial performance does not guarantee future results. Individual results will vary.
Fuzzy’s Taco Shop Litigation & Risk Flags
Clean Litigation RecordFuzzy’s Taco Shop has no pending litigation actions listed in their FDD.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Fuzzy’s Taco Shop System Growth
Total Units
137
Franchised
134
Company-Owned
3
Fuzzy’s Taco Shop currently operates 134 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 7 | 13 | 140 |
| 2021 | 5 | 8 | 137 |
| 2022 | 7 | 7 | 137 |
Transfers: 12 | Closures: 25
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Revenue
$735K
Net Income
$182K
Total Assets
$83.5M
Audited by Ernst & Young LLP for year ending Last Sunday of December.
Fuzzy’s Taco Shop Franchise — FAQ
The total investment to open a Fuzzy’s Taco Shop franchise ranges from $635,000 to $1,614,600, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000 for a Traditional Restaurant or $30,000 for a Taqueria Restaurant. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Fuzzy’s Taco Shop charges a royalty fee of 5% of Gross Sales of gross sales, plus a 2% of Gross Sales (Development Fund) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Fuzzy’s Taco Shop Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Fuzzy’s Taco Shop to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Fuzzy’s Taco Shop franchise owners report average revenue of $1.8M and median revenue of $1.6M. This is based on a sample of 118 units. Past performance does not guarantee future results.
Fuzzy’s Taco Shop has been franchising since 2008. The FDD shows an investment range of $635,000-$1,614,600, a 5% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 for a Traditional Restaurant or $30,000 for a Taqueria Restaurant and the total investment ranges from $635,000 to $1,614,600 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Fuzzy’s Taco Shop and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Fuzzy’s Taco Shop or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com