Fuzzy’s Taco Shop Franchise Cost, Revenue & Review 2026
- Investment
- $1.0M – $3.0M
- Disclosed sales
- $1.6M
- gross sales, not profit
- SBA charge-off
- 13.3%
- on 45 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Fuzzy's Taco Shop is a fast-casual franchise serving Baja-style tacos, burritos, and Mexican fare with a laid-back, bar-friendly vibe. Franchisees run restaurants managing food prep, counter service, drinks, and staffing.
FranchiseVerdict summary · 2026
A FUZZY’S TACO SHOP franchise requires a total initial investment of $1.0M – $3.0M, including a $10K – $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.6M[2]. SBA 7(a) loans show a 13.3% charge-off rate across 45 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $1.0M – $3.0M
- 93rd pct Service Resta…
- Avg gross sales
- $1.6M
- Outlet subset29th pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 106
- 77th pct Service Resta…
- SBA charge-off
- 13.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.0M – $3.0M including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.6M/year (reported for a subset of outlets rather than the whole system).
- RISKVerdict B (Above average), verdict score 50/100 (higher is better). SBA loan charge-off rate of 13.3% across 45 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -11 franchised outlets in the latest year (5 opened, 16 closed) (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Fuzzy's Taco Opportunities, LLC
- Parent company
- FTO Strategic Company 1, LLC / FTO Holding Company, LLC
- FDD Item 1, page 8 of the 2026 FDD
- Ultimate parent
- Dine Brands Global, Inc.
- FDD Item 1, page 8 of the 2026 FDD
- CEO title
- Chief Executive Officer, Dine Brands
- John Peyton
- Incorporated in
- Texas
- HQ
- 10 W. Walnut Street, 5th Floor, Pasadena, California 91103
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $11.7M
- vs $14.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 8
3 other brands on this site name Dine Brands Global, Inc. as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- John Peyton
- Headquarters
- California
- Founded
- 2008
- FDD year
- 2026
- States available
- 15
Can you afford it, and what does the money buy?
Entry cost runs 321% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
published investment is a traditional Restaurant (3,000-4,000 sq ft). The same filing prices a taqueria-style Restaurant separately at $806,900-$1,338,100.
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $20K | $70K |
| Equipment, build-out, other | $990K | $2.9M |
| Total initial investment | $1.0M | $3.0M |
Source: FUZZY’S TACO SHOP 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.0M – $3.0M
- Bottom third — review vs category
- Liquid capital req'd
- $20K – $70K
- Top 40% of category vs category
- Franchise fee
- $10K – $40K
- Middle of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $8K |
| Renewal fee | $5K |
| Inventory (initial) | $28K – $42K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 65% above the quick-service restaurants norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for FUZZY’S TACO SHOP until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$2.1M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one FUZZY’S TACO SHOP unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $1.6M
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 90 outlets
- vs category median 19 · large
- Range (low → high)
- $475K→$4.0MCited, not corroborated — printed on page 50 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $794K→$2.0M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.6M/year in gross sales. Revenue-to-investment ratio: 0.8x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 7.0% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -13.4% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Fuzzy’s Taco Shop Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 106
- Opened
- 5
- Last reporting year
- Closed
- 16
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 15.1%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- -13.4%
- Net unit change over 3 years
- 3-yr CAGR
- -13.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 2
- Transferred
- 6
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 5
- Franchisor's next-year forecast
- Termination rate
- 0.9%
- Franchisor-initiated terminations
- Ceased ops
- 14.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
93 current owners across 19 states.
- TX 35
- CO 16
- OK 9
- FL 8
- KS 8
- MO 4
- AL 1
- AR 1
- AZ 1
- GA 1
- IA 1
- LA 1
- +7 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 45
- Loan volume
- $25.0M
- Median loan
- $556K
- average
- Charge-off rate
- 13.3%
- on 45 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- 100.0%
- Loans approved 2021+
- Active lenders
- 27
- Defaults
- 4
- Typical loan rate
- 6.2%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- 1,407
- Lender concentration
- N/A
Borrower mix: 33% went to startups / new businesses, 67% to established operators
Top lenders financing Fuzzy’s Taco Shop franchisees
Showing 3 of 27 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Fuzzy’s Taco Shop from SBA 7(a) FOIA data.
- Avg interest rate
- 6.17%
- Avg chargeoff amount
- $431K
- Jobs supported
- 1,407
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Celtic Bank Corporation | 4 | N/A | N/A |
| 2 | PNC Bank, National Association | 4 | N/A | N/A |
| 3 | First Horizon Bank | 3 | N/A | N/A |
| 4 | Wallis Bank | 3 | N/A | N/A |
| 5 | Hancock Whitney Bank | 2 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 28 | 0 | -- |
| IAIowa | 6 | 0 | -- |
| FLFlorida | 4 | 0 | -- |
| ALAlabama | 3 | 0 | -- |
| KSKansas | 1 | 0 | -- |
| OHOhio | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 13.3% — 17% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
Three arbitration proceedings (AAA) filed by FTO against franchisees in 2023-2024 for unauthorized/unilateral restaurant closures in breach of franchise agreements; FTO obtained awards of $243,119.45 (May 2024) and $425,810 (Feb 2025) in two of the cases; the third (Red Oak et al.) remains in discovery.
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
Vance Chang, CFO of Dine Brands and franchisor, was previously CFO of YogaWorks, Inc., which filed Chapter 11 bankruptcy on October 14, 2020 in the U.S. Bankruptcy Court for the District of Delaware due to COVID-19-related business pressures; Chang left YogaWorks in November 2019.
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 50 / 100 verdict
- 01MEDUnit count declined 11.5% YoY (117 units) indicating system contraction and franchisee struggles
- 02MINORThree active arbitration cases alleging unauthorized closures suggest franchisor-franchisee relationship breakdown and possible systemic operational issues
- 03HIGH5% royalty on $1.59M average revenue = $79,500 annual franchisor take; insufficient to support multi-unit litigation and operations
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Pasadena, California (franchisor's principal business office; AAA arbitration) |
| Jury trial waiver | No |
| Governing law | Texas |
| Litigation count | 3 |
View Item 3 litigation summary
Three arbitration proceedings (AAA) filed by FTO against franchisees in 2023-2024 for unauthorized/unilateral restaurant closures in breach of franchise agreements; FTO obtained awards of $243,119.45 (May 2024) and $425,810 (Feb 2025) in two of the cases; the third (Red Oak et al.) remains in discovery.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 225 hrs
- Training location
- DFW (North Texas) affiliate-owned Restaurant
- Ongoing training
- Required
- Field support
- 185 hrs/yr
- On-site visits per year
- Time to open
- 15 mo
- From signing to launch
- Site selection
- franchisor
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast POS / Aloha POS (approved systems)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast POS / Aloha POS (approved systems)
Item 20 · call current owners
Franchisee Contacts
93 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a FUZZY’S TACO SHOP franchise?
The total investment to open a FUZZY’S TACO SHOP franchise ranges from $1.0M – $3.0M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do FUZZY’S TACO SHOP franchise owners earn?
According to Item 19 of the FUZZY’S TACO SHOP FDD, the average gross sales per unit is $1.6M. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns FUZZY’S TACO SHOP?
FUZZY’S TACO SHOP is franchised by Fuzzy's Taco Opportunities, LLC. Its parent company is FTO Strategic Company 1, LLC / FTO Holding Company, LLC. The ultimate parent named in the FDD is Dine Brands Global, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the FUZZY’S TACO SHOP FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the FUZZY’S TACO SHOP FDD and qualifies whose outlets they describe.
What is FUZZY’S TACO SHOP's franchise failure rate?
Based on SBA 7(a) loan data, FUZZY’S TACO SHOP has a charge-off rate of 13.3% across 45 loans, meaning 13.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many FUZZY’S TACO SHOP franchise locations are there?
As of their most recent FDD filing, FUZZY’S TACO SHOP has 106 total units in the United States, including 105 franchised units and 1 company-owned units. 5 new units were opened in the latest reporting year.
Is FUZZY’S TACO SHOP a good franchise to buy?
FranchiseVerdict rates FUZZY’S TACO SHOP as a B-grade franchise with a verdict score of 50 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.