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TACO JOHN'S

TACO JOHN'S

Taco John’s International, Inc. franchises restaurants specializing in Mexican-inspired fast food, such as tacos and other traditional and cross-ethnic menu items, offered for dine-in, carryout, or drive-thru service. The business model involves granting single-unit franchises or area development rights to operate under the Taco John’s trademarks, recipes, and standardized restaurant system, including traditional (freestanding, endcap, drive-thru) and non-traditional locations. Their target market includes consumers seeking quick-service Mexican cuisine in various settings across 22 states.

316locations
Since 1969
Food & BeverageCheyenne, WYwww.tacojohns.comDisclaimer

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Franchise Costs

Franchise Fee
$40,000
Initial Investment
N/A
Royalty Rate
N/A
Brand Fund
N/A

Financial Performance


Item 19 Financial Performance

Average Gross Revenue
$1,213,788.68
Median Gross Revenue
$1,176,775
Top Quartile Revenue
$1,815,130.03
Bottom Quartile Revenue
$752,707.13

Data Based On: 299 franchised Taco John's Restaurants open and operating for at least 12 months as of December 31, 2025.

* Average Gross Revenue was calculated as the weighted average of the 'Combined' average sales for the three restaurant types mentioned in the tables: - Traditional Freestanding: 248 units at $1,260,890 - Traditional Endcap: 26 units at $1,025,570 - C-Store and Travel Plaza: 25 units at $942,291 Formula: (248 * 1260890 + 26 * 1025570 + 25 * 942291) / (248 + 26 + 25) = $1,213,788.68. Median Gross Revenue: The document provides combined median performer values for each restaurant type. A single overall median for all 299 units is not explicitly provided. Therefore, the median of the largest group (Traditional Freestanding Restaurants: 248 units) was selected as the best single representation: $1,176,775. Revenue Top Quartile was calculated as the weighted average of the 'Top Quartile' average sales across the three restaurant types: - Traditional Freestanding Top Quartile: 62 units at $1,889,495 - Traditional Endcap Top Quartile: 6 units at $1,465,754 - C-Store and Travel Plaza Top Quartile: 6 units at $1,396,068 Formula: (62 * 1889495 + 6 * 1465754 + 6 * 1396068) / (62 + 6 + 6) = $1,815,130.03. Revenue Bottom Quartile was calculated as the weighted average of the 'Lower Quartile' average sales across the three restaurant types: - Traditional Freestanding Lower Quartile: 62 units at $775,273 - Traditional Endcap Lower Quartile: 6 units at $661,447 - C-Store and Travel Plaza Lower Quartile: 7 units at $631,061 Formula: (62 * 775273 + 6 * 661447 + 7 * 631061) / (62 + 6 + 7) = $752,707.13. No information regarding gross profit, net income, net profit, EBITDA, or related expenses/margins was provided. Item 19, Note 6 explicitly states that the charts only show sales and are not a statement of profits or earnings, and no expenses are included.

Extracted Item 19 Section

Avg. Revenue: $1,213,789

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TACO JOHN'S Franchise Analysis

Taco John's carved its niche in Mexican fast food with drive-thrus and tacos since 1969, operating in 22 states through a mix of single units and developments. Item 19 lays out revenue stats that stand out in quick-service, while 22 SBA loans and a bankruptcy history in the system add layers to scrutinize. Can this compact 316-unit network deliver reliable returns, or do the disputes signal operational hurdles?

Financially, the $40,000 franchise fee provides accessible entry compared to bigger QSR peers, though Item 7 would detail full buildout costs for freestanding or endcap sites—typically landing Taco John's investments around $1M+ based on category norms. Item 19 shines with average gross sales of $1,213,789 and median $1,176,775 across franchised units, suggesting strong top-line performance for a regional player with only 11 corporate stores. Yet, 8 system transfers and 3 terminations last year hint at some churn, while projected openings of just 7 new units reflect modest expansion in a competitive fast food landscape.

SBA data flags 22 loans averaging $523,409, a volume that underscores franchisee reliance on financing but without default rates disclosed, it warrants checking lender trends. Litigation centers on royalty collection arbitrations against franchisees and guarantors, pointing to cash flow pressures rather than broad lawsuits. Bankruptcy history exists, likely tied to past economic dips, but current revenues bolster resilience—ideal for operators eyeing $800K+ AUVs in underserved markets, though slow growth demands caution against saturation risks.

Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How TACO JOHN'S Compares

FranchiseInvestmentFeeRoyaltyLocations
TACO JOHN'S
Current
N/A$40KN/A316
MCDONALD'S$1.5M – $2.6M$45KN/A12,772
LITTLE CAESARS$377K – $1.8M$20K6.0%3,788
AFC$45K – $151K$6K8.0%3,572
KFC (NON-TRADITIONAL)$1.2M – $4.2M$45KN/A3,404
SONIC DRIVE-IN$1.5M – $2.5M$15K5.0%3,120
Fast Food Average
133 franchises
$598K – $1.6M$35K6.1%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 133 Fast Food franchises by location count.

SBA Loan History


Historical SBA 7(a) loan data for TACO JOHN'S franchisees (20102025)

Total Loans
22
Average Loan
$523,409
Total Volume
$11.5M
Default Rate
0.0%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

22 SBA loans on record

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Franchisee Contacts

320 franchisee contacts on file from official FDD filings.

320 Contacts Available

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Due Diligence


Litigation (Item 3)

Franchisee Cases1

Royalty payment collection arbitration against franchisees and guarantors.

Bankruptcy (Item 4)

Bankruptcy HistoryYes

CFO Richard Bundy’s prior employer, Christopher & Banks Corporation, filed Chapter 11 in January 2021.

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
3
Non-Renewals
0
Reacquired
4
Ceased Ops
12
Transfers
8
Sold to Franchisees
0
Projected New
7

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Frequently Asked Questions

TACO JOHN'S does disclose financial performance data (Item 19) in their 2026 FDD, including average and median gross revenue figures. Get full access to see the exact revenue numbers and detailed financial breakdown.