About Taco Bell Express Franchise
Taco Bell Express is a compact format quick service restaurant under the Taco Bell brand, owned by YUM! Brands, Inc.
Designed for locations where a traditional full size Taco Bell would not be feasible due to space or layout constraints, Express units bring the popular Mexican style menu to non traditional settings such as convenience stores, airports, college campuses, and other high traffic venues.
Franchising since 2016, the initial franchise fee is $22,500.
Taco Bell Express Franchise Cost & Fees
Minimum Investment
$228K
Average Investment
$469K
Maximum Investment
$711K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $22,500 | One-time payment upon signing |
| Royalty Fee | 10% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | None (Franchisor does not have power to require contribution to advertising fund, but requires purchase of point of purchase materials) | National brand fund |
| Total Investment Range | $227,500 – $711,100 | Includes build-out, inventory, working capital |
The investment range of $228K–$711K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (10% of Gross Sales) and marketing fee (None (Franchisor does not have power to require contribution to advertising fund, but requires purchase of point of purchase materials)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Background Check Fee | $350 | $600 |
| Initial License Fee | $22,500 | $22,500 |
| First Unit Design Services Fee | $2,000 | $5,000 |
| Land - First month's rent | $2,100 | $4,500 |
| Architectural Fees | $1,500 | $45,000 |
| Equipment Start-Up | $1,000 | $10,000 |
| Equipment and Decor | $150,000 | $230,000 |
| Buildout and Construction | $25,000 | $275,000 |
| Signs | $1,000 | $40,000 |
| Shipping & Tax | $1,600 | $15,000 |
| Cash Control Systems | $7,000 | $25,000 |
| Deposits, Business License, Permits | $500 | $10,000 |
| Initial Inventory | $3,000 | $8,500 |
| Additional Funds (3 mos) | $10,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 3rd party (non-private equity) transfers: $7,500/transfer (1-5 units), $1,500/unit (6+ units); 3rd party transfers involving private equity: Greater of non-private equity transfer fee or $150,000; Entity restructures: $2,500 total (unless changes to license agreement, then 3rd party transfer fee); Higher fee for unique/complex restructures |
| Renewal Fee | $11,250 (Successor Fee) |
| Technology Fee | Touch KDS Software: $248/yr; SmartHub Software: $295 one-time payment & $144/yr; Recommended Ordering: $120/yr; eRestaurant Support: $2,311/yr; FOH & Support Services: $1,986/yr; All Access Fee: $1,250/yr; Digital Transaction Fee: $0.19 per Digital Transaction |
| Audit Fee | Any and all costs incurred in connection with the inspection or audit, including reasonable accounting and legal fees (only if Gross Sales understated by 2% or more) |
| Late charges | Interest at the lesser of 18% per annum or the highest rate permitted by New York law plus the then-customary late charge |
| Additional Trainee Fee | $350 per person |
| Training materials | As established by us |
| Reimbursement of insurance expense | Actual cost of insurance |
| Extension Fee | $750 for a 3-month extension; $2,250 for a 6-month extension plus $1,000 for each additional month beyond 6 months |
| De-identification costs | Actual cost of de-identifying Unit |
| Attorneys’ fees | Prevailing party in any litigation is entitled to reasonable attorneys’ fees and costs paid by other party |
| Liquidated Damages | Greater of 11% of Unit's Gross Sales for last 12 months of operation or $100,000 (if License Agreement terminated for certain specified reasons) |
| Customer Care Fee | $455 per year per Restaurant |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 7-8 weeks |
| Classroom Training | 8 hours (for Food Safety Certification) |
| On-the-Job Training | 50 hours per week for 7-8 weeks (up to 400 hours) |
| Training Location | Approved Company Owned Restaurant; Local classroom or on-line for Food Safety |
| Additional Training | Additional trainees can be trained for a fee ($350 per person). Tuition may be charged for non-mandatory training courses. Optional classroom training (e.g., Achieving Breakthrough Results, The Mark, The Quest) is available at franchisee expense. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | The License Agreement does not grant territorial protection or exclusivity. The franchisor may grant such rights in separate transactions or temporarily by policy. The franchisor and its affiliates operate many Taco Bell Units (Traditional and Express) and permit other licensees, franchisees, and third parties to use the Trademarks and System. The franchisor reserves the right to locate its own Taco Bell Units, and units of other YUM! Brands chains, anywhere without regard to proximity to the franchisee's Unit. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years (new units), 9 months to 5 years (existing KT units) |
| Renewal Fee | $11,250 (Successor Fee) |
| Renewal Conditions | No renewal rights are granted. A successor policy exists, subject to modification/cancellation, under which a new agreement might be offered. Conditions include operational and financial approval, Unit upgrade, payment of successor fee, signing a release, and potentially new contract terms. Temporary extensions for remodels/relocations may be granted for an additional fee. |
| Transfer Fee | 3rd party (non-private equity) transfers: $7,500 (1-5 units), $1,500/unit (6+ units); 3rd party transfers involving private equity: Greater of non-private equity transfer fee or $150,000; Entity restructures: $2,500 (unless license agreement changes, then 3rd party transfer fee); Higher fee for unique/complex restructures. |
| Transfer Conditions | Transfer is subject to franchisor's prior written approval. Conditions include no existing default, all amounts due paid, transferee signs a release, transfer fee paid, transferee completes training, provides biographical/financial information, and executes the then-current contract. Entity organizational documents are subject to review and approval. |
| Termination for Cause | Franchisor can terminate immediately for material breaches (e.g., failure to complete training, loss of premises, material misrepresentation, felony conviction, unauthorized transfer, pattern of repeated defaults). Other defaults allow 30 days to cure. Repetition of default within one year justifies termination without cure period. |
| Non-Compete Period | During term of agreement; 1 year after termination within 10-mile radius |
| Non-Compete Details | During the term, the licensee cannot directly or indirectly engage in a similar business (Mexican-style food products) without prior written consent. After termination due to breach, this restriction applies for one year within a ten-mile radius of the Restaurant. Licensee and family may own up to 10% of a publicly traded company in a similar business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The licensee must devote full time, best efforts, and constant personal attention to the day-to-day operations of the Unit. If an employee is designated as supervisor, they must successfully complete the training program and devote full time. This employee is not required to hold an equity interest. If the license is transferred to an entity, the individual licensee remains obligated to devote full time attention unless otherwise agreed. |
| Required Suppliers | Franchisees must purchase or lease certain products according to franchisor specifications and from approved suppliers. McLane Foodservice, Inc. is the authorized distributor for food/supply items. Wasserstrom and RSCS Equipment Sales and Services are approved distributors for equipment and smallwares, and certain Computer and Information Technology hardware. Yum! Brands’ Architecture and Engineering Department is the only approved supplier for the required Design Service Program. |
| Supply Restrictions | Essentially 100% of purchases/leases for furniture, fixtures, equipment, smallwares, food, and paper products must meet franchisor specifications. Use of inferior or non-specification products is a material breach. Food products specifications are available from the Quality Assurance Department. Beverages from The Coca-Cola Company are not approved for sale. Franchisees are required to exclusively sell products licensed by Pepsi and/or the Pepsi/Lipton Tea Partnership. |
| Franchisor Revenue from Suppliers | The franchisor does not directly derive revenue from vendors or distributors from sales to franchisees, nor does it receive lower prices or discounts. However, it receives royalties from third-party aggregator companies for licensing the Taco Bell brand. YRSG earned $165,750 in 2022 for development services to Taco Bell franchisees. Yum! Brands’ Architecture and Engineering Department earned no revenue from Taco Bell licensees for development services. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer, directly or indirectly, any arrangements for financing the initial investment or continuing operations. It cannot predict whether a franchisee will obtain financing or the terms of such financing. The franchisor's predecessor (TBC) previously sold promissory notes of franchisees and assigned lease rents to third parties, a practice the current franchisor may continue. |
Taco Bell Express Franchise Earnings — Item 19
Taco Bell Express does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Taco Bell Express does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Taco Bell Express Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Taco Bell Express System Growth
Total Units
242
Franchised
235
Company-Owned
7
Taco Bell Express currently operates 235 franchised locations and 7 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 10 | 79 | 265 |
| 2021 | 31 | 37 | 259 |
| 2022 | 14 | 31 | 242 |
Transfers: 13 | Closures: 147
Public Figures (Item 18)
The following public figures are associated with this franchise: Performing artists, Sports figures, Celebrity figures
State Registrations
Registered in 13 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$574.3M
Net Income
$574.6M
Total Assets
$112.4M
Audited by KPMG LLP for year ending Last Tuesday in December.
Taco Bell Express Franchise — FAQ
The total investment to open a Taco Bell Express franchise ranges from $227,500 to $711,100, per their Franchise Disclosure Document. This includes the initial franchise fee of $22,500. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Taco Bell Express charges a royalty fee of 10% of Gross Sales of gross sales, plus a None (Franchisor does not have power to require contribution to advertising fund, but requires purchase of point of purchase materials) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Taco Bell Express 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 Taco Bell Express to ensure you have the most up-to-date version.
Taco Bell Express does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Taco Bell Express has been franchising since 2016. The FDD shows an investment range of $227,500-$711,100, a 10% of Gross Sales royalty, and no Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $22,500 and the total investment ranges from $227,500 to $711,100 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 Taco Bell Express and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Taco Bell Express or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com