Rusty TacoFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Rusty Taco franchise requires a total initial investment of $528K – $1.1M, including a $30K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.1M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $528K – $1.1M
- 34th pct Service Resta…
- Avg gross sales
- $1.1M
- 10th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 37
- 34th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $528K – $1.1M including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $601K).
- Verdict A (Top Quintile) with a risk score of 36/100.
- Emerging franchise: only 3 years of franchising with 37 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Rusty Taco Franchising, LLC
- Parent company
- Rusty Taco Parent LLC
- Predecessor
- and Affiliates
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 5412 W. Plano Pkwy., Suite 100, Plano, Texas 75093
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $1.7M
- vs $2.1M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- RT Gift Card
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate fast-casual taco restaurants, managing daily kitchen operations, customer service, inventory, and staff while leveraging Rusty Taco's brand, menu systems, and operational standards. Day-to-day activities include food preparation, point-of-sale management, staffing, and local marketing within their protected territory.
- CEO
- Anand Gala
- Headquarters
- TX
- Founded
- 2022
- FDD year
- 2025
- States available
- 12
FDD Item 7 · 2025 filing · 14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $30K | $30K | |
| Rent and Security Deposit | $3K | $10K | |
| Utility Deposits | $6K | $10K | |
| Construction, Remodeling and Leasehold Improvements | $253K | $621K | |
| Permits and Licenses | $3K | $7K | |
| Architect Fee | $20K | $60K | |
| Furniture, Fixtures, Equipment, and Signage | $163K | $250K | |
| Initial & Opening Training Costsnot refundable | $0 | $15K | |
| Computer System | $2K | $5K | |
| Initial Inventory/Supplies | $7K | $10K | |
| Professional Services | $5K | $15K | |
| Initial Advertising and Marketing Expenses | $10K | $15K | |
| Insurance | $6K | $30K | |
| Additional Funds (3 months) | $20K | $50K | |
| Total initial investment | $528K | $1.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$117K
11.0% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
7.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $528K – $1.1M
- Better than avg vs category
- Liquid capital req'd
- $20K – $50K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · 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 | $1K |
| Transfer fee | $5K |
| Renewal fee | $8K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $1.1M
- Per unit, per year
- Median gross sales
- $601K
- Item 19 type
- Average Unit Volume
- Sample size
- 24 units
- vs category median 13
- Range (low → high)
- $409K→$1.8M
- Cohort dispersion (min → max)
- Quartile band
- $645K→$1.5M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Rusty Taco Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 37
- Opened
- 8
- Last reporting year
- Closed
- 5
- Turnover rate
- 13.5%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- +9.1%
- Net unit change last year
- 3-yr CAGR
- +9.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 3
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 2.9%
- Franchisor-initiated terminations
- Ceased ops
- 8.8%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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.
Available to sell in · Item 12
- Hawaii
- Illinois
- Indiana
- Michigan
- Rhode Island
- South Dakota
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $949K
- Median loan
- $949K
- 50th percentile
- Charge-off rate
- 0.0%
- 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
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Rusty Taco's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rusty Taco presents moderate-to-cautious risk: undisclosed profitability metrics, franchisor financial concerns, and sluggish unit growth obscure true franchisee ROI potential.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $75,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 36 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents ROI validation despite $1.07M average revenue
- 02HIGHGoing Concern status is False, indicating potential financial instability at franchisor level
- 03MEDSlow unit growth of 9.1% YoY with only 37 total units suggests limited market traction or franchisee satisfaction
- 04MEDWide investment range ($528K-$1.13M) with no disclosed net income makes break-even timeline unpredictable
- 05MINOR5% royalty on $1.07M average revenue = $53,350 annual franchisor income per unit may be insufficient to support system
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 172 hrs
- Training location
- On-site and at franchisor location
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
39 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Rusty Taco · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Rusty Taco franchise?
The total investment to open a Rusty Taco franchise ranges from $528K – $1.1M, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Rusty Taco franchise owners earn?
According to Item 19 of the Rusty Taco FDD, the average gross sales per unit is $1.1M. The median is $601K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Rusty Taco's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Rusty Taco (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Rusty Taco franchise locations are there?
As of their most recent FDD filing, Rusty Taco has 37 total units in the United States, including 4 franchised units and 1 company-owned units. 8 new units were opened in the latest reporting year.
Is Rusty Taco a good franchise to buy?
FranchiseVerdict rates Rusty Taco as a A-grade franchise with a risk score of 36 out of 100, 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.
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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.