Fuzzy’s Taco Shop Franchise Cost, Revenue & Review 2026
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]. The 2026 FDD does not disclose unit-level revenue (no Item 19). 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 →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $1.0M – $3.0M
- 94th pct Service Resta…
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- 5.0%
- 11th 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 avg · 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.
- RETURNSItem 19 reports historical Gross Sales (not audited) for traditional franchised Restaurants for the 12-month period Dec 30, 2024 - Dec 28, 2025, split by Texas (n=50, avg $1,317,871) vs Rest of US (n=40, avg $1,972,292), and further broken into quartiles for each region. No single blended average/median figure is disclosed, so avg_gross_sales/median_gross_sales are left null; see item19_cohorts for segment detail. No net income/profit data is disclosed in Item 19.
- 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).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
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
- Ultimate parent
- Dine Brands Global, Inc.
- 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
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 211% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
casual restaurant - 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%
- percentage · 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?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FUZZY’S TACO SHOP did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one FUZZY’S TACO SHOP unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
5%
Below the 30–60% attractive-franchise band
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
Item 19 reports historical Gross Sales (not audited) for traditional franchised Restaurants for the 12-month period Dec 30, 2024 - Dec 28, 2025, split by Texas (n=50, avg $1,317,871) vs Rest of US (n=40, avg $1,972,292), and further broken into quartiles for each region. No single blended average/median figure is disclosed, so avg_gross_sales/median_gross_sales are left null; see item19_cohorts for segment detail. No net income/profit data is disclosed in Item 19.
Reported for a subset of outlets rather than the whole system
- Item 19 type
- gross sales
- Sample size
- 90
- vs category median 20 · large
- Range (low → high)
- $475K→$4.0M
- 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 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Quick-Service Restaurants average).
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
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 averages
How Fuzzy’s Taco Shop Compares
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
- 14
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 15.2%
- 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
3-year detail · Item 20
- Opened (3yr)
- 5
- Closed (3yr)
- 14
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 2
- Transfers (3yr)
- 6
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 7
- 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.
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%
- 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.
Premium insight
SBA Lending Report
Deep-dive into Fuzzy’s Taco Shop's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 12-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
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
Fuzzy's Taco Shop presents HIGH RISK due to accelerating unit decline (-11.5% YoY), active multi-unit litigation alleging unauthorized closures, undisclosed profitability, and questionable corporate going concern status.
Litigation (Item 3)
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.
Largest disclosed settlement: $425,810
Bankruptcy (Item 4)
Disclosed in last 7 years
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
- 03HIGHGoing concern status = False indicates potential financial instability at corporate level affecting support and longevity
- 04HIGH5% 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 |
| 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
FDD download
FUZZY’S TACO SHOP · FDD (2026) PDF
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?
FUZZY’S TACO SHOP does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
Are you the franchisor?
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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.