About TacoTime Franchise
TacoTime is a quick service Mexican restaurant franchise known for its commitment to fresh preparation and quality ingredients.
This iteration of the brand operates under MTY Food Group, Inc., one of the largest franchise restaurant companies in North America.
The franchise has been offering opportunities since 2003 and maintains a menu centered on tacos, burritos, and other Mexican favorites made fresh daily.
TacoTime Franchise Cost & Fees
Minimum Investment
$331K
Average Investment
$533K
Maximum Investment
$735K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 6% of total weekly Gross Sales or $400 per week of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 4% of weekly Gross Sales | National brand fund |
| Total Investment Range | $331,150 – $734,800 | Includes build-out, inventory, working capital |
The investment range of $331K–$735K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of total weekly Gross Sales or $400 per week) and marketing fee (Up to 4% of weekly Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $14,000 | $30,000 |
| Lease Review Fee | $0 | $2,500 |
| Rent/Security Deposit (for 3 months) | $6,000 | $20,000 |
| Travel and Living Expenses (2 persons) while training, not including salaries, if any, for you and your employees | $3,000 | $7,500 |
| Real Estate | N/A | N/A |
| Architectural Fees | $7,000 | $17,000 |
| Leasehold Improvements | $170,000 | $360,500 |
| Restaurant Equipment, Furniture, Small Wares, Interior Signage and Menu Panels | $88,000 | $177,000 |
| Exterior Signage | $7,000 | $30,000 |
| Computer Hardware, Software (POS System) | $3,000 | $15,000 |
| PCI Compliance Costs | $150 | $1,300 |
| Opening Inventory (food and paper) | $4,000 | $10,000 |
| Business Insurance | $3,000 | $12,000 |
| Miscellaneous Opening Costs | $8,000 | $19,000 |
| Grand Opening Marketing | $10,000 | $10,000 |
| Depository Account | $3,000 | $3,000 |
| Additional Funds - 3 month initial period | $5,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500 (traditional), $5,000 (non-traditional) |
| Renewal Fee | 50% of the then-current Initial Franchise Fee not including any discounts or reductions |
| Technology Fee | Up to $75 per month (Data Fees); $55 per month (POS Help Desk Phone Support Maintenance Contract Fee) |
| Audit Fee | Cost of Audit plus interest at Default Rate on underpayments or the maximum rate permissible by law |
| Surcharge | maximum of $10 per week |
| Additional Persons Training Fee | $1250 per person ($500 in-store, $750 new owner) |
| Additional Training Fee | $300 per person per day |
| Annual Meeting Registration Fee | Up to $1,000 plus incidental costs to attend |
| Depository Account | $3,000 (must be replenished on a regular basis) |
| Gift Card Redemption Fee | Currently 11% of the amount of the gift card redemption |
| Relocation Fee | $500 |
| Document Administration Fee | $500 |
| Default Interest | $50 plus interest at 1-1/2% per month or maximum legal rate, if less |
| Late Report Fee | $100 per report |
| Sublease Late Charge | 5% of the late or unpaid amount plus any late charges and interest incurred under the Master Lease |
| Collection Costs | All collection costs including, but not limited to, reasonable attorneys' fees |
| Non-Sufficient Funds Fee | $50 for each electronic funds transfer returned; $25 for each check or draft returned |
| New Supplier Approval Fee | A charge not to exceed the reasonable cost of the inspection and the actual cost of the test not to exceed $5,000 |
| Early Termination Damages | The average monthly Royalty and Advertising Fees paid for any consecutive 12 month period within the preceding 48 month period multiplied by the number of months remaining in the term of the Franchise Agreement, and the product is divided by 2. |
| Non-Participation Fee | $100 per day |
| Management Fee | 6% of the Franchised Business’ Gross Sales (in addition to the Royalty Fee and Advertising Fee) plus our direct out-of-pocket costs and expenses. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 160 hours (40 hours classroom, 120 hours on-the-job) |
| Classroom Training | 40 |
| On-the-Job Training | 120 |
| Training Location | Online, KTEC (Kahala Training & Education Center) in Scottsdale, AZ, or other designated location for classroom; Training restaurant in Utah or other designated location for in-store. |
| Additional Training | Additional training is available for $300 per person per day. Franchisees are responsible for all transportation, food, lodging, and personal expenses for training. Refresher or additional training programs may be held in the future, with mandatory attendance and a nominal registration fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees do not receive an exclusive territory. The franchisor and its affiliates retain the right to establish other franchised or company-owned TacoTime restaurants, co-brand TacoTime with other concepts, or sell TacoTime products through other distribution channels (e.g., grocery stores, vending machines, mobile units) anywhere, including in the immediate vicinity of a franchisee's location. These other operations may compete with the franchisee's business. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 5 years |
| Renewal Fee | 50% of the then-current Initial Franchise Fee not including any discounts or reductions |
| Renewal Conditions | To renew, franchisees must not be in default, be in complete compliance with the agreement and Confidential Manual, have received no more than 3 default notices during the term (2 in the last 5 years), have existing or suitable new premises, sign a general release, execute new agreements (which may have materially different terms and higher fees), and upgrade/remodel equipment and POS system as required. |
| Transfer Fee | $7,500 |
| Transfer Conditions | For approval, the new franchisee must qualify (financially, character, experience, aptitude, English proficiency, no conflicting interests), no existing defaults, transfer fee and training fee paid, all obligations satisfied, new franchisee completes training, remodels/refurbishes if necessary, keeps existing phone number, and a release is signed by the transferring franchisee. |
| Termination for Cause | Defaults that can be cured have cure periods ranging from less than 24 hours (e.g., social media policy violations, health/safety issues) to 7 days (e.g., unpaid fees, insurance) or 14 days (other defaults). Non-curable defaults include bankruptcy, abandonment (3 consecutive days closure), unauthorized closure/relocation, felony conviction, false representations, trademark misuse, and intentional underreporting of sales. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, no involvement in any competing business. For two years after termination or expiration, no competing business within 10 miles of any TacoTime restaurant. A 'Competing Business' is primarily engaged in selling freshly made tacos and burritos. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | While not strictly required to personally participate, the franchisor intends to select franchisees who plan to actively participate. The franchise must be personally managed with on-premises supervision by the franchisee, another partner/shareholder/member, or a manager who has successfully completed the training program. A full-time on-premises manager is required. |
| Required Suppliers | Approved distributors and suppliers for food products, ingredients, equipment, computer hardware and software, furniture, fixtures, décor, signs, and other products, services and materials. Specific examples include Neptune Equipment for certain equipment and Kahala Management for POS Help Desk Phone Support Maintenance and real estate services. Coca-Cola Company for carbonated fountain soft drinks. Olo for online ordering services. |
| Supply Restrictions | Franchisees must purchase or lease items from franchisor-designated or approved suppliers. These items may be more expensive than similar items from other sources. Exclusive use of approved cash register/POS system and software is required. Exclusive use of approved third-party payment card processor for debit/credit/gift card transactions is mandated. Online food ordering must use Olo, and no other store-specific online ordering service is permitted. |
| Franchisor Revenue from Suppliers | MTY USA and its subsidiaries derived $30,329,806 from sales of products, services, and product allowances to franchisees in 2021, representing approximately 14% of total recognized revenue. Neptune Equipment earned $862,172 from required franchisee purchases. Kahala Management earned $556,694 from POS help desk phone support maintenance fees. Rebates and/or allowances from certain suppliers, usually ranging between 1% and 5% of franchisee purchases, are received by the franchisor or its affiliates. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may, at its sole discretion, finance up to 100% of the purchase price for corporate restaurants sold 'as-is' by its affiliates. The annual interest rate will be between 0% and 12%, with repayment terms ranging from 12 to 60 months. A first-position lien on all equipment is required, and personal guarantees are mandatory for individuals and principals of entities. Additionally, the franchisor or an affiliate may, at its sole discretion, agree to guarantee a franchisee's lease for a fee of 10% of the total rental obligations, up to a maximum of $10,000. |
TacoTime Franchise Earnings — Item 19
Average Revenue
$816K
Median Revenue
$806K
Revenue Range
$294K – $1.6M
Sample Size
108 units
Past financial performance does not guarantee future results. Individual results will vary.
TacoTime Litigation & Risk Flags
3 Pending Actions 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.
TacoTime System Growth
Total Units
108
Franchised
108
Company-Owned
0
TacoTime currently operates 108 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 25 | 11 | 122 |
| 2020 | 6 | 10 | 112 |
| 2021 | 8 | 4 | 108 |
Transfers: 39 | Closures: 25
State Registrations
Registered in 13 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$216.7M
Net Income
$30.0M
Total Assets
$750.1M
Audited by PricewaterhouseCoopers LLP for year ending November 30.
TacoTime Franchise — FAQ
The total investment to open a TacoTime franchise ranges from $331,150 to $734,800, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
TacoTime charges a royalty fee of 6% of total weekly Gross Sales or $400 per week of gross sales, plus a Up to 4% of weekly Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the TacoTime 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 TacoTime to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, TacoTime franchise owners report average revenue of $816K and median revenue of $806K. This is based on a sample of 108 units. Past performance does not guarantee future results.
TacoTime has been franchising since 2003. The FDD shows an investment range of $331,150-$734,800, a 6% of total weekly Gross Sales or $400 per week royalty, and includes an Item 19 earnings disclosure. There are 3 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 $30,000 and the total investment ranges from $331,150 to $734,800 depending on location size and market. A minimum of $5,000 in liquid capital is required. 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 TacoTime and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with TacoTime or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com