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How Much Does a Taco Bell Franchise Cost?

Entrepreneurship in the fast-food franchise industry comes at a cost. Taco Bell is no exception to this with hefty startup and ongoing costs.

If you’re a fan of Taco Tuesday, or tacos any day, then a Taco Bell franchise may be the business venture for you.

NerdWallet reported that the Taco Bell franchise network brings in more than $10 billion in sales each year, and the average sales of a Taco Bell franchise were around $1.6 billion. 

What makes Taco Bell unique is that there are different franchising options for this eatery. The cost of opening a Taco Bell franchise will vary, depending on the franchise option you choose. These include:

  • Traditional units - These are single-brand stores in freestanding, permanent buildings
  • Gas station units - These are Taco Bell locations in a gas station
  • Express units - This scaled-back version of Taco Bell has a more selective menu offering

The total cost of a standalone Taco Bell is between $1.2 million and $2.6 million, aside from land and lease cost. 

The initial investment depends on your location and the type of Taco Bell you plan to open. This initial investment is between $530,000 and $3 million.

Franchising fees for Taco Bell range between $25,000 and $50,000, which also varies depending on the type of Taco Bell unit you open. 

Taco Bell requires potential franchisees to have a net worth minimum of around $1.5 million in assets and cash liquidity around $750,000.

There are ongoing fees associated with being a Taco Bell franchisee, including a royalty fee of 5.5% of sales, a marketing and advertising fee of 4.25% and a fee of $350 in training per person you bring on staff. Other ongoing fees include land fees and rent or mortgage. 

Yum! Brands also does not provide franchise financing and utilizes a third-party to assist franchisees with startup costs, equipment and whatever else they may need. Qualified minority business owners, however, may be able to use optional lending programs from Yum! Brands and receive up to $3 million in financing.

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