Taco Bell Franchise Costs
Opening a Taco Bell franchise might be the perfect way to put your business ambitions into action without having to start from scratch. In 2023, each restaurant made an average of $2.1 million.
But buying a ready-made money maker comes at a significant cost, including not only franchise fees but real estate, inventory, equipment and more. While specifics can vary widely based on your location, the type of facility you’re hoping to open and other factors, a traditional Taco Bell franchise costs about $610,750 to $3,980,200 up front.
Taco Bell net worth requirements
Like many other franchise organizations, Taco Bell has specific wealth requirements for franchise applicants. You’ll need a net worth of at least $5 million, along with $2 million in liquid assets to qualify to open a franchise. Even if you’re able to get funding to open a Taco Bell, you won’t be approved if you don’t meet those requirements.
Taco Bell franchise overview
Originally opened in 1962 by World War II veteran Glen Bell — yes, that’s how it got its name — Taco Bell is owned today by Yum! Brands, the corporate group that also owns KFC and Pizza Hut. According to the company’s website, there are more than 7,000 Taco Bells in the United States serving over 42 million customers each week, as well as a growing number of international properties.
Taco Bell units come in several different types, and which you’re interested in opening will have a large impact on the total upfront cost. You can choose from the following:
- Traditional locations, which are stand-alone restaurants with their own fully equipped kitchen, an indoor dining area, and often a drive-thru.
- In-Line locations, which are similar to traditional units but generally smaller, often appearing in urban locales. (The Taco Bell Cantina locations, which serve alcohol, are In-Line units.) In-Lines that feature a drive-thru are known as End-Caps.
- Power Pumpers, which are Taco Bell locations attached to a gas station or travel store.
- Taco Bell Express locations, which are more sparsely equipped units that may serve only a limited selection of the full Taco Bell menu. These may be stand-alone locations or kiosks constructed in larger buildings.
Taco Bell franchise costs
If you’re hungry to open your own Taco Bell restaurant, you should know the overall costs to buying a franchise are far greater than the initial franchise fee.
Again, specifics can vary considerably. Cities with a lower cost of living will generally cost less to build and operate a restaurant in, and scaled-down Express locations cost far less to outfit than Traditional units do. You might also be able to save upfront costs by purchasing an existing Taco Bell location rather than building a brand new one — costs for doing so range between $175,000 and $1,800,000, not including property.
Here’s a rough idea of how much it costs to franchise a Taco Bell according to Franchimp, a franchise data company:
- Background check: $500 to $700 per person
- Initial franchise fee: $25,000 to $45,000
- First Unit construction fee: $27,250
- Real Estate Services fee (optional): $0 to $37,250
- Marketing fee: 4.25% of store sales
- Training fee: $350 per person on staff
There may also be additional fees, like royalty fees. And that’s all before including the actual costs of building and outfitting the location.
These costs can include:
- Real estate or rent: $45,000 to $1,400,000
- Permits and licensing: $74,000 to $125,000
- Actual site construction: $177,000 to $1,700,000
- Equipment, signage and decor: $200,000 to $570,000
- Initial inventory: $7,000 to $10,000
- Grand opening: $5,000
- Operational funding for the first three months: $40,000 to $60,000
That adds up to a total investment of:
- $1,584,750 to $3,980,200 for Traditional units and Power Pumpers
- $610,750 to $1,440,200 for In-Line and End-Cap units, and
- $262,950 to $649,700 for Taco Bell Express locations
Keep in mind that these are estimates, not guarantees. Your costs could be higher, depending on your location and real estate needs.
Taco Bell franchise funding
Taco Bell doesn’t offer its franchisees direct financial assistance, though it may refer lenders willing to offer financing to you. You may want to consider franchise loan options to help cover the upfront costs.
Depending on your needs, commercial real estate loans could help you purchase property, or equipment loans could allow you to obtain the necessary kitchen equipment you’ll need for your taco empire. And the U.S. Small Business Administration (SBA) also offers funding for buying a franchise.
Note that although Taco Bell has relationships with third-party lenders who may be willing to offer franchise financing, it does not disclose the total amount franchisees are permitted to finance. The only way to get exact information on requirements and qualifications is to contact the company directly via its franchise page.
Taco Bell franchise pros and cons
Are those high Taco Bell franchise costs worth it? Like any investment, opening a Taco Bell (or buying an existing one) has both drawbacks and benefits.
| Pros | Cons |
|---|---|
Taco Bell is a beloved, long-standing brand that’s easy to sell — it’s typically an even stronger earner than other major Yum! Brands restaurants like KFC and Pizza Hut. The different styles of Taco Bell units available offer flexibility. Your Taco Bell restaurant may be relatively easy to hire for since few specialized skills are necessary. Taco Bell offers training and support for aspiring franchise owners | Taco Bell is a relatively expensive franchise to start up compared to other brands. A Taco Bell restaurant requires quite a few employees to keep each shift running smoothly. It’s not a passive investment — franchise owners are expected to be actively involved in day-to-day operations. No direct funding options available. |
Franchise alternatives to Taco Bell
Still curious about becoming a franchisee but rethinking your devotion to Taco Tuesday?
There are plenty of other options out there, many of which you can buy in to at lower costs (or which may offer the promise of larger earnings). Consider:
Chick-fil-A
Willing to trade your Crunchwrap Supreme for a fried chicken sandwich with a side of lemonade? Chick-fil-A has one of the lowest franchise fees in the business — though like Taco Bell, it requires active involvement in the business’s daily operations.
- Initial fee: $10,000
- Total investment: $585,500 to $3,337,000
- Liquid assets: No stated requirement aside from $10,000 initial franchise fee
Baskin-Robbins
Looking for a sweet franchise option that costs significantly less overall than Taco Bell? Here’s the scoop on franchising a Baskin-Robbins location.
- Initial fee: $25,000
- Total investment: $90,000 to $625,000
- Liquid assets: $100,000 and a net worth of $100,000 to $200,000
McDonald’s
McDonald’s isn’t necessarily any cheaper to franchise than Taco Bell, but the iconic golden arches is also the fast food chain that dominates the industry’s market share.
- Initial fee: $45,000
- Total investment: $1,470,500 to $2,642,000
- Liquid assets: $500,000
As you can see, there are plenty of ways to buy into a ready-made business without paying Taco Bell franchise costs. Whether you’re looking to fill a taco shell, scoop ice cream cones or flip burgers, there might be a franchise option for you.