TACO BELL TRADITIONAL (UNIT)

Item 7 in the 2026 FDD pegs initial investment for a Traditional Unit at $287,950 to $857,700, covering builds for free-standing, in-line, or end-cap formats with drive-thrus and full menus. Upfront franchise fee hits $22,500, followed by steep 10% royalties plus $750 annual All Access Fee and $286 quarterly One-Step Merchandising Program—ongoing fees that squeeze margins in a price-sensitive Mexican fast-food niche. No Item 19 means no official revenue or profit benchmarks, forcing reliance on indirect signals like 41 SBA loans averaging $786,727 with a solid 2.4% default rate, suggesting franchisees secure big funding and mostly repay.

Franchising since 1964, Taco Bell boasts 221 franchise units versus 14 corporate, but the system contracted 6% from 224 to 211 locations between 2024 and 2025, with 5 non-renewals and 5 transfers signaling modest turbulence. Projected 9 new units offers slim growth prospects amid competition. This trajectory implies a mature, brand-backed play for experienced operators tolerant of high costs and opacity on earnings, but the dip flags caution—low defaults indicate viability, yet without sales data, proving ROI demands deep diligence.