How much revenue does a Mike's Red Tacos franchise make?

According to the 2025 FDD, the average gross revenue for a Mike's Red Tacos franchise is $2,963,621.

Is Mike's Red Tacos a good franchise to buy?

Mike's Red Tacos shows several positive indicators: transparent financial performance data (Item 19). However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.

Mike's Red Tacos

Mike’s Red Tacos operates fast-casual restaurants featuring a birria-inspired menu of street-style tacos and other Mexican foods including burritos, quesadillas, nachos, loaded fries, and ramen, with carry-out, dine-in, and online ordering options. The franchisor primarily offers area development franchises requiring a minimum of three restaurants in designated areas, though single-unit franchises may be available for non-traditional locations. Their business model targets the general public in retail strip malls, urban areas, shopping centers, and entertainment venues.

$620K–$1938K

Investment

Since 2025

Franchising

Food & BeveragePasadena, CAwww.mikesredtacos.comDisclaimer

Franchise Costs

Franchise Fee

$20,000

Item 5 of FDD

Initial Investment Range

$619,800 – $1,938,000

Low: $619,800High: $1,938,000

Item 7 of FDD

Royalty Rate

N/A

Brand Fund

N/A

Item 6 of FDD

Fixed Monthly Fees

$1,717 – $3,147

Item 6 of FDD

No royalty or ad fund fees mentioned. Key ongoing fixed fees: $515/mo back-office security + $200/mo guest response + $165/mo mystery shopper + $100/mo food safety + TOM fees ($170-$500/wk or ~$737-$2,167/mo).

Financial Performance

Item 19 Financial Performance

Average Gross Revenue

Data Based On: One affiliate-owned Mike's Red Tacos Restaurant (the 'Reporting Affiliate Location') open for at least one year as of December 31, 2024.

* Gross Sales of $2,963,621 are reported for a single 'Reporting Affiliate Location' between January 1, 2024, and December 31, 2024. The document explicitly states that the earnings claims do not reflect costs of sales, operating expenses, or other costs, so no net income, net profit, EBITDA, or profit range could be calculated. No franchised units were in operation.

Extracted Item 19 Section

How Mike's Red Tacos Compares

Franchise	Investment	Fee	Royalty	Locations
Mike's Red Tacos Current	$620K – $1.9M	$20K	N/A	0
Tropical Smoothie Cafe	$300K – $721K	$35K	6.0%	1,371
TROPICAL SMOOTHIE CAFÉ	$300K – $721K	$35K	6.0%	1,371
FIREHOUSE SUBS RESTAURANTS (UNIT)	$379K – $1.4M	$20K	6.0%	1,248
Zaxby's	$1.4M – $3.8M	$35K	6.0%	826
Qdoba	$548K – $1.3M	$40K	5.0%	652
Fast Casual Average 107 franchises	$532K – $1.2M	$39K	5.6%	–

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 107 Fast Casual franchises by location count.

Due Diligence

Litigation (Item 3)

Franchisee Cases0

No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryN/A

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations

Non-Renewals

Reacquired

Ceased Ops

Transfers

Sold to Franchisees

Projected New

Frequently Asked Questions

The total initial investment to open a Mike's Red Tacos franchise ranges from $619,800 to $1,938,000. This includes a franchise fee of $20,000.

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