Fuzzy’s Taco Shop
Bottom line
- Total investment $647K – $1.6M including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.6M/year (median $1.8M).
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 56 loans (below the industry average).
- System contracting at -13.4% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 FUZZY’S TACO SHOP unit return on the cash you put in?
Unlevered ROIC · per unit
22%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 FUZZY’S TACO SHOP units return on equity?
Equity IRR · 5-yr
35.3%
4.54× MOIC
Year-1 DSCR
2.31×
EBITDA ÷ debt service
Equity required
$5.0M
on $14.3M purchase
Total debt
$9.3M
SBA $5.0M + senior + seller note
Overview
About
Fuzzy's Taco Shop franchisees operate quick-service Mexican food restaurants serving tacos, burritos, and related items in protected territories. Day-to-day operations include inventory management, food preparation, staffing, POS management, and local marketing to drive the ~$1.59M average unit volume.
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 · 14 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
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.
Score breakdown · what drove the 62 / 100 rating
- 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
- 03MINORNo net income disclosure (Item 19) prevents accurate ROI assessment despite $1.56M maximum investment requirement
- 04HIGHGoing concern status = False indicates potential financial instability at corporate level affecting support and longevity
- 05MINORHigh initial investment range ($647K-$1.56M) paired with declining unit count creates poor risk-reward profile
- 06HIGH5% 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
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
75 numbers
One-time purchase · CSV download · Validation questions included
FDD download
FUZZY’S TACO SHOP · FDD (2025) PDF