Bottom line
- Total investment $129K – $428K including a $49K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.5M/year (median $1.5M). Estimated payback in 1.0 years.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 14 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Capital Tacos unit return on the cash you put in?
Unlevered ROIC · per unit
71%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Capital Tacos units return on equity?
Equity IRR · 5-yr
43.6%
6.10× MOIC
Year-1 DSCR
2.01×
EBITDA ÷ debt service
Equity required
$2.8M
on $11.2M purchase
Total debt
$8.4M
SBA $5.0M + senior + seller note
Overview
About
Capital Tacos franchisees operate quick-service taco restaurants, managing food preparation, inventory, staffing, and customer service in a counter-service model. Day-to-day operations involve managing COGS (typically 28–35% in QSR), labor scheduling, maintaining food safety standards, and driving local marketing to meet the $1.49M average revenue benchmark.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Small, stagnant franchise system with undisclosed financial performance data, franchisor stability concerns, and unverified unit economics creates moderate-to-high risk despite protected territories and no litigation.
Score breakdown · what drove the 54 / 100 rating
- 01MINOROnly 8 units with unknown growth trajectory suggests stagnant or shrinking system
- 02HIGHGoing Concern = False indicates potential financial instability or viability questions at franchisor level
- 03MEDNo Item 19 (Financial Performance Representations) disclosed — cannot validate if $291k average net income is achievable
- 04MINORWide investment range ($129k–$427k) suggests inconsistent buildout costs or hidden variables
- 05MINOR6% royalty on $1.49M average revenue = $89,400/year in fees — sustainability unclear at lower-performing units
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
31 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Capital Tacos · FDD (2023) PDF