About Tacos 4 Life Franchise
Tacos 4 Life is a fast casual restaurant franchise serving fresh tacos, nachos, quesadillas, salads, and other food products in a mission driven dining environment.
Franchising since 2017 under Tacos 4 Life, LLC, the brand combines quality Mexican inspired cuisine with a social impact model that resonates with today's purpose minded consumers.
The initial franchise fee is $35,000.
Tacos 4 Life Franchise Cost & Fees
Minimum Investment
$1.3M
Average Investment
$1.6M
Maximum Investment
$2.0M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 5% of Franchisee Restaurant’s weekly Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Franchisee Restaurant’s weekly Net Sales (Marketing Production Fund) + at least 1% of Franchisee Restaurant’s weekly Net Sales (Local Advertising Fee) | National brand fund |
| Total Investment Range | $1,267,000 – $2,013,000 | Includes build-out, inventory, working capital |
The investment range of $1.3M–$2.0M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Franchisee Restaurant’s weekly Net Sales) and marketing fee (1% of Franchisee Restaurant’s weekly Net Sales (Marketing Production Fund) + at least 1% of Franchisee Restaurant’s weekly Net Sales (Local Advertising Fee)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Business Licenses & Permits | $2,000 | $15,000 |
| Rent and Security Deposit | $0 | $15,000 |
| Improvements | $600,000 | $1,100,000 |
| Architect and Design | $30,000 | $50,000 |
| Furniture & Fixtures | $47,000 | $50,000 |
| Equipment | $350,000 | $375,000 |
| Exterior Signage | $20,000 | $65,000 |
| Initial Inventory | $15,000 | $20,000 |
| Point of Sale System and Monthly Technology Fee | $48,000 | $60,000 |
| Insurance | $5,000 | $8,000 |
| Professional Fees | $2,000 | $10,000 |
| Training Expenses | $25,000 | $30,000 |
| On-Site Hourly Trainers supplied by Us | $30,000 | $35,000 |
| Pre-Opening Payroll | $25,000 | $50,000 |
| Additional Funds for 3 months | $50,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 plus any broker fees or commissions we incur. |
| Renewal Fee | 50% of our then-current initial franchise fee |
| Technology Fee | $100 Due on the first day of each calendar month |
| Audit Fee | Cost of the audit if the audit determines you have underpaid us by more than 2% of the amount the audit determines we are actually due. |
| Meal 4 Meal Contribution | $0.25 for each taco, salad, quesadilla, and rice bowl sold, plus $0.29 for every Double Donation. |
| Regional Cooperative Fund | Contributions credited towards Local Advertising Fee. |
| Onsite Training (Additional) | $200 per day, per Trainer plus each Trainer’s hourly rate. |
| Additional Training during Franchise Term | $300 per trainer per day plus expenses (at our location); $500 per day plus expenses (in your Territory). |
| Transfer of equity interest | $3,500 plus any broker fees or commissions we incur. |
| Operational Evaluation Fee | Our then-current per diem fee (currently $300), plus reimbursement of our expenses. |
| Insurance Reimbursement | Our direct costs, plus an 18% Administrative Fee. |
| Product and Supplier Testing | Costs of testing and/or evaluation. |
| Late Payments and Insufficient Funds | Highest legal interest rate OR 5% of overdue amount + $100 insufficient fund fee. |
| Prohibited Product or Service Fee | $250 per day. |
| Remodeling of Franchisee Restaurant | Costs of remodeling/redecorating (capped at $25,000 per year unless related to renewal). |
| Costs and Attorneys’ Fees | Will vary under circumstances (if in default). |
| Wholesale Account Approval Fee | $1,500.00. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 5 weeks (with an optional sixth week) |
| Classroom Training | 47 hours |
| On-the-Job Training | 232 hours |
| Training Location | A location designated by the franchisor. |
| Additional Training | Franchisee and its Leaders and employees shall attend and conduct such additional training programs as Franchisor may from time to time reasonably require relating to the operation of the Franchisee Restaurant and the System. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Approximately 100,000 people, defined as a radius around the Approved Location (two and ½ (2.5) miles) or via street boundaries. |
| Description | The territory is generally defined as an area of approximately 100,000 people, either as a 2.5-mile radius around the Approved Location (measured by shortest automobile route) or by street boundaries. While the franchisor will not open a standalone Company Restaurant or grant a license to another franchisee for a standalone restaurant within this territory, it expressly reserves the right to operate or license operations at Non-Traditional Sites or pursuant to National Accounts within or without the territory, and to develop/franchise other business systems. The territory is non-exclusive in terms of marketing rights or clientele. Franchisee may not advertise or promote outside its territory without written consent. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two additional 10-year terms |
| Renewal Fee | 50% of our then-current initial franchise fee |
| Renewal Conditions | Franchisee must provide 90 days written notice, demonstrate right to operate at approved/substitute location, complete all maintenance/refurbishing/remodeling/upgrades to meet current standards within 90 days, not be in breach of agreements, satisfy all monetary obligations, execute current Franchise Agreement (terms may vary), satisfy current training requirements at own expense, and execute a general release. |
| Transfer Fee | $5,000 plus any broker fees or commissions we incur. |
| Transfer Conditions | Franchisor's approval is subject to: purchaser having satisfactory credit rating, good moral character, and business qualifications; purchaser entering into current Franchise Agreement and other required agreements (including guaranty); proposed transfer terms (including purchase price) being satisfactory to franchisor; all monetary obligations paid in full; franchisee and equity holders executing a general release; franchisee reimbursing franchisor for legal/training/other expenses; and franchisee offering interest to franchisor first (right of first refusal). |
| Termination for Cause | Franchisor can immediately terminate without cure period for reasons like failure to equip/supply within 18 months, bankruptcy, felony conviction, health/safety hazard, material misrepresentation, misuse of Marks, or three default notices in 12 months. For curable defaults, franchisor can terminate with 30 days' written notice if not remedied (with a possible additional 30 days if good faith efforts are made). |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the agreement, franchisee and restricted parties (5%+ equity holders) cannot have direct/indirect interest or perform services for any Competitive Business (restaurant selling tacos, where 20%+ entree offerings are tacos). For 2 years after termination/expiration, the same restriction applies within a 25-mile radius of any TACOS 4 LIFE Restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must devote personal full-time attention and best efforts to the management and operation of the Franchisee Restaurant. If the franchisee is an entity, a person with the right to receive at least 20% of the operating profits must serve as the Operator and dedicate full-time attention to day-to-day operations. The Operator must be approved by the franchisor and successfully complete initial training. The Operator may be approved for multiple Franchise Agreements or Restaurants. The franchisee must keep the franchisor informed of the identity and employment status of any employees acting as Operator. |
| Required Suppliers | Franchisor, its affiliates (e.g., Giving Table for furniture/décor), or approved and designated suppliers for all inventory items, merchandise, printing supplies, printed materials, brochures, equipment, fixtures, furnishings, product display units, signs, uniforms, supplies, delivery services, computer hardware and software (e.g., Hawkeye, Crunchtime), product display units, signs, uniforms, supplies, Franchisee Restaurant design and layout services, and materials. |
| Supply Restrictions | Franchisee must use only approved products and services that conform to franchisor's standards and specifications. Franchisor has the right to require exclusive purchase from designated suppliers (including franchisor or affiliates). Franchisee must obtain prior written consent for unapproved items/suppliers and may incur testing costs. Franchisor may revoke approval of products or suppliers at any time. |
| Franchisor Revenue from Suppliers | During our fiscal year ended December 31, 2022, we derived $0, or 0% of our total revenue from required franchise purchases or leases. During its fiscal year ended December 31, 2022, our affiliate the Giving Table derived $199,540.92 or 40.7% of its total revenue of $489,714.00 from required purchases or leases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor its affiliates directly offer any financing arrangements for start-up expenses or in the establishment of the franchise relationship where no pre-existing Franchisee Restaurant is yet in existence. The franchisor does not receive direct or indirect payments from third parties for any financing arrangements in which an Operator participates. However, in select, case-by-case instances, the franchisor has transferred existing Company Restaurants to Operators/franchisees, and such arrangements involved the use of financing by the franchisor for limited periods until the Operator/franchisee obtained third-party financing. The franchisor does not guarantee leases for Franchisee Restaurants, except in these select cases where a Restaurant began as a Company Restaurant and was subsequently purchased by an Operator/franchisee. |
Tacos 4 Life Franchise Earnings — Item 19
Tacos 4 Life 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.
Tacos 4 Life 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.
Tacos 4 Life Litigation & Risk Flags
Clean Litigation RecordTacos 4 Life has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Tacos 4 Life System Growth
Total Units
25
Franchised
13
Company-Owned
12
Tacos 4 Life currently operates 13 franchised locations and 12 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 2 | 0 | 18 |
| 2021 | 3 | 1 | 20 |
| 2022 | 6 | 1 | 25 |
Transfers: 0 | Closures: 2
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$1.5M
Net Income
$973K
Total Assets
$1.8M
Audited by CONNER & SARTAIN for year ending December 31.
Tacos 4 Life Franchise — FAQ
The total investment to open a Tacos 4 Life franchise ranges from $1,267,000 to $2,013,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Tacos 4 Life charges a royalty fee of 5% of Franchisee Restaurant’s weekly Net Sales of gross sales, plus a 1% of Franchisee Restaurant’s weekly Net Sales (Marketing Production Fund) + at least 1% of Franchisee Restaurant’s weekly Net Sales (Local Advertising Fee) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Tacos 4 Life 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 Tacos 4 Life to ensure you have the most up-to-date version.
Tacos 4 Life 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.
Tacos 4 Life has been franchising since 2017. The FDD shows an investment range of $1,267,000-$2,013,000, a 5% of Franchisee Restaurant’s weekly Net Sales royalty, and no 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 $35,000 and the total investment ranges from $1,267,000 to $2,013,000 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 Tacos 4 Life and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Tacos 4 Life or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com