Taco Bell Franchise Cost, Revenue & Review 2026
- Investment
- $1.9M – $4.3M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Limited · 85 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Taco Bell franchise requires a total initial investment of $1.9M – $4.3M, including a $45K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: A (Strongest tier), 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: partial✓ 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 scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $1.9M – $4.3M
- 38th pct Service Resta…
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- 5.5%
- 23rd pct Service Resta…
- Units
- 7,998
- 38th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-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 $1.9M – $4.3M including a $45K franchise fee, 5.5% ongoing royalty.
- RETURNSItem 19 does not disclose historical average unit sales/net income; it discloses margin-of-error statistics for third-party sales forecasting tools (Bell Point, Kalibrate, SiteZeus) used for prospective new-unit site selection. Kalibrate/SiteZeus back-tested projected 2nd-year Gross Sales on 183 units (opened 2023) ranged $826,707-$3,621,383 (Kalibrate) and $616,474-$3,991,919 (SiteZeus), with 61%/64% of projections within 20% of actual sales, respectively.
- RISKVerdict A (Strongest tier), verdict score 80/100 (higher is better).
- GROWTHNegative: net -6 franchised outlets in the latest year (168 opened, 174 closed) (Item 20).
- DATAItem 19 does not yield a per-outlet annual revenue figure we can compare across brands. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Taco Bell Franchisor, LLC
- Parent company
- Taco Bell Franchisor Holdings, LLC
- FDD Item 1, page 6 of the 2026 FDD
- Ultimate parent
- YUM! Brands, Inc.
- Predecessor
- Taco Bell Corp.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Sean Tresvant
- Incorporated in
- Delaware
- HQ
- 1 Glen Bell Way, Irvine, California 92618
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $793.4M
- vs $727.3M prior year
Same owner · FDD Item 1
4 other brands on this site name YUM! Brands, 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
Franchisor of Taco Bell and Taco Bell Express quick-service Mexican-inspired restaurants (Traditional, In-Line, End-Cap and multi-brand KT units).
- CEO
- Sean Tresvant
- Headquarters
- California
- Founded
- 1962
- FDD year
- 2026
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost runs 355% above the typical full-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $40K | $60K |
| Equipment, build-out, other | $1.8M | $4.2M |
| Total initial investment | $1.9M | $4.3M |
Source: Taco Bell 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
- $1.9M – $4.3M
- Top 40% of category vs category
- Liquid capital req'd
- $40K – $60K
- Top 40% of category vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- 5.5%
- typical 6–8%
- Ad fund
- 4.3%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 4.3% of gross sales |
| Technology fee | $750 |
| Training fee | $350 |
| Transfer fee | $8K |
| Renewal fee | $23K |
| Inventory (initial) | $7K – $10K |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Taco Bell is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Taco Bell 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 annual revenue, 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.
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 does not disclose historical average unit sales/net income; it discloses margin-of-error statistics for third-party sales forecasting tools (Bell Point, Kalibrate, SiteZeus) used for prospective new-unit site selection. Kalibrate/SiteZeus back-tested projected 2nd-year Gross Sales on 183 units (opened 2023) ranged $826,707-$3,621,383 (Kalibrate) and $616,474-$3,991,919 (SiteZeus), with 61%/64% of projections within 20% of actual sales, respectively.
Reported for a subset of outlets rather than the whole system
- Item 19 type
- forecast model
- Sample size
- 183
- vs category median 18 · large
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 801 Full-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
5.5% royalty + 4.3% ad fund.
Disclosure
Item 19 does not yield a per-outlet annual revenue figure we can compare across brands.
Operator retention
System roughly stable (+1.9% 3-year CAGR) with 7,998 units.
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 Full-Service Restaurants medians
How Taco Bell Compares
Category median of published Full-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
- 7,998
- Opened
- 168
- Last reporting year
- Closed
- 174
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 8
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.2%
- Company-owned
- 663
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
- Net growth (3-yr)
- +1.9%
- Net unit change over 3 years
- 3-yr CAGR
- +1.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 8
- Transferred
- 134
- Reacquired
- 144
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 50 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
50
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 85
- Loan volume
- $46.4M
- Median loan
- $350K
- 50th percentile
- Charge-off rate
- Limited · 85 loans
- Limited SBA coverage: 85 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 85 loans
- 5-yr charge-off
- Limited · 85 loans
- Loans approved 2021+
- Active lenders
- 49
- Defaults
- 4
- Typical loan rate
- 6.0%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7222
- Jobs supported
- 1,919
- 4.1 per loan
- Lender concentration
- 11%
- top lender's share
Borrower mix: 22% went to startups / new businesses, 78% to established operators
Vintage analysis
Taco Bell charge-off rate by loan vintage
Top lenders financing Taco Bell franchisees
Showing 3 of 49 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 Taco Bell from SBA 7(a) FOIA data.
- Principal loss rate
- 1.3%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 5.99%
- Avg chargeoff amount
- $149K
- Lender concentration
- 10.6%
- Job velocity
- 4.1 per $100K
- Jobs supported
- 1,919
Top SBA lendersTop lender holds 11% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 9 | N/A | N/A | |
| 2 | 5 | N/A | N/A | |
| 3 | 4 | N/A | N/A | |
| 4 | 3 | N/A | N/A | |
| 5 | 3 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 14 | 0 | 0.0% |
| NYNew York | 10 | 0 | 0.0% |
| GAGeorgia | 7 | 0 | 0.0% |
| TXTexas | 6 | 0 | 0.0% |
| ILIllinois | 5 | 0 | 0.0% |
| COColorado | 4 | 0 | 0.0% |
| KYKentucky | 3 | 1 | 33.3% |
| MIMichigan | 3 | 0 | 0.0% |
| PAPennsylvania | 3 | 0 | 0.0% |
| VAVirginia | 3 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
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: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
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
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Ongoing fees run about 9.8% 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 | 25 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 0 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 350 hrs
- Training location
- Approved Company Owned Unit(s)
- Ongoing training
- Required
- Time to open
- 21 mo
- From signing to launch
- Site selection
- both
- Franchisor financing
- Offered
- Item 10
- POS system
- Annspire Point of Sale (Byte POS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Annspire Point of Sale (Byte POS)
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Taco Bell franchise?
The total investment to open a Taco Bell franchise ranges from $1.9M – $4.3M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Taco Bell franchise owners earn?
Item 19 of the Taco Bell FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Taco Bell?
Taco Bell is franchised by Taco Bell Franchisor, LLC. Its parent company is Taco Bell Franchisor Holdings, LLC. The ultimate parent named in the FDD is YUM! Brands, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Taco Bell 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 Taco Bell FDD and qualifies whose outlets they describe.
What is Taco Bell's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Taco Bell (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 Taco Bell franchise locations are there?
As of their most recent FDD filing, Taco Bell has 7,998 total units in the United States, including 7,335 franchised units and 663 company-owned units. 168 new units were opened in the latest reporting year.
Is Taco Bell a good franchise to buy?
FranchiseVerdict rates Taco Bell as a A-grade franchise with a verdict score of 80 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.