Rusty Taco
Rusty Taco franchises allow operators to develop and run restaurants serving freshly prepared food inspired by Mexican and Texas flavors, including tacos and other items, paired with alcoholic and non-alcoholic beverages in a casual neighborhood gathering place atmosphere. The business model centers on franchising the Rusty Taco brand, trademarks, and proprietary operating system, with options for single-unit franchises or multi-unit area development agreements committing to 2-5 locations. It targets the general public in the highly competitive fast-casual Tex-Mex and Mexican restaurant market.
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
5% royalty + 2% brand fund + $250-$1,000/mo technology fee + up to $1,000/mo LMS fee
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 24 traditional franchised Rusty Taco Restaurants operating for the full fiscal year 2024, excluding new openings and atypical locations.
* Verified the overall Average Unit Volume by calculating the weighted average of the Top, Middle, and Bottom Third segments: (8 * $1,521,669 + 8 * $1,035,505 + 8 * $645,291) / 24 = $1,067,488.33, which matches the reported total average ($1,067,488) when rounded.
Extracted Item 19 Section
How Rusty Taco Compares to Other Fast Casual Franchises
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
Rusty Taco Current | $528K - $1.1M | $30K | 5.0% | 36 |
| 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.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
SBA Loan History
Historical SBA 7(a) loan data for Rusty Taco franchisees (2021 - 2021)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
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 Rusty Taco franchise?
The total initial investment to open a Rusty Taco franchise ranges from $528,400 to $1,127,950. This includes a franchise fee of $30,000. Ongoing royalty fees are 5.0% of gross sales.
How much revenue does a Rusty Taco franchise make?
According to the 2025 FDD, the average gross revenue for a Rusty Taco franchise is $1,067,488. The median revenue is $600,638.
How many Rusty Taco franchise locations are there?
As of the 2025 FDD, Rusty Taco has 36 franchise locations. The company has been franchising since 2015.
Can you get an SBA loan for a Rusty Taco franchise?
Yes, SBA loans are available for Rusty Taco franchises. Historical data shows 1 SBA 7(a) loans have been approved for Rusty Taco franchisees, with an average loan amount of $949,000. The historical default rate is 0.0%.
Is Rusty Taco a good franchise to buy?
Rusty Taco shows several positive indicators: transparent financial performance data (Item 19), low SBA loan default rate. 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 Rusty Taco?
Talk to a franchise advisor to get personalized guidance and learn if Rusty Taco is the right fit for you.
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