Mike's Red Tacos

Item 7 lays out the initial investment from $619,800 to $1,938,000, covering build-out for 1,500-3,000 sq ft spots, equipment, and opening costs—lower end for non-traditional venues, higher for prime urban or shopping center builds. Franchise fee is a straightforward $20,000, but ongoing fees skip royalties and ad funds entirely; instead, expect fixed monthly hits like $515 for back-office security, $200 guest response, $165 mystery shopper, $100 food safety, plus TOM fees at $170-$500 weekly (~$737-$2,167 monthly). Single-unit deals are rare, mainly for odd spots, as they push area development with minimum three restaurants per territory.

System maturity is early—franchising since 2025 with just two corporate locations, but Item 19 shows average gross revenues of $2,963,621 across those, signaling strong early traction in a high-margin taco niche. Projected 8 new units reflect cautious optimism, no red flags on terminations or transfers yet given the youth. For buyers eyeing $600K+, this no-royalty structure could mean keeping more top-line, but the hefty fixed ops costs and multi-unit mandate demand serious volume—crunch if those $3M sales hold for franchisees.