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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
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).
Franchise Stats
Financial Performance
Item 19 Financial Performance
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 to Other Fast Casual Franchises
| Franchise | Investment Range | Franchise 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)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a Mike's Red Tacos franchise?
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.
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.
Interested in Mike's Red Tacos?
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