FranchiseVerdict
Taco Bell Express logo
FV-02538·MODERATEStandard76

Taco Bell Express

Food & Beverage - Full ServiceFranchising since 1964Website
Investment
$287K – $856K
34th pct Full Service
Avg revenue
57th pct Full Service
Royalty
10.0%
92nd pct Full Service
Units
238
91st pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $287K – $856K including a $23K franchise fee, 10.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 115 loans (below the industry average).
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Taco Bell Franchisor, LLC
Parent company
YUM! Brands, Inc.
Incorporated in
Delaware
HQ
1 Glen Bell Way, Irvine, California 92618
Auditor
KPMG LLP
Audited financials
Franchisor revenue
$652K
vs $727K prior year

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 Taco Bell Express unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $287K–$856K
Working capital
$
FDD reports $10K–$20K

Unlevered ROIC · per unit

13%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$75K
EBITDA margin
10.0%
Total invested
$587K
Payback
94 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate limited-service Taco Bell kiosks or small-footprint locations, typically in non-traditional venues (airports, gas stations, universities). Day-to-day operations include food preparation, inventory management, staffing, and customer service with reduced overhead compared to full-service restaurants, but also limited revenue potential.

CEO
Sean Tresvant
Founded
1962
FDD year
2025
States available
38

Item 7 · what it costs

The Vitals

Total investment
$287K – $856K
All-in to open one unit
Liquid capital
$10K – $20K
Cash you must have on hand
Franchise fee
$23K
Royalty
10.0%
Gross Sales · typical 6–8%
Ad fund
n/d
Total fee load
10.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
238
Opened
9
Last reporting year
Closed
11
Turnover rate
4.6%
Company-owned
14
Corporate units in the system
% franchised
94%
vs corporate-owned
Multi-unit owners
12.5%
Net growth (yr3)
-2.2%
Net unit change last year
3-yr CAGR
-3.4%
Compounded over last 3 years
2023
224+2
Franchised units
2024
229
Franchised units
2025
232
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 15 states
Not registered

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.

Total loans
115
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

56
Risk · 0-100
MODERATE56 / 100

Taco Bell Express presents elevated risk due to declining unit count, missing financial transparency, unprotected territories, and high royalty burden on a shrinking franchise system.

Score breakdown · what drove the 56 / 100 rating

  1. 01MINORUnit count declining 2.2% YoY (238 units) indicates system contraction and potential market saturation or franchisee exit issues
  2. 02MEDNo average revenue or net income disclosed (Item 19) prevents accurate ROI analysis and suggests franchisor may be hiding underperformance
  3. 03MINORWide investment range ($287K-$855K) with no profitability benchmarks creates uncertainty about break-even timeline and capital requirements
  4. 04MINORUnprotected territory exposes franchisees to direct competition from other Taco Bell Express units and parent company cannibalization
  5. 05MINOR10% royalty on gross sales (not net) is aggressive and burdensome during low-revenue periods, compounding cash flow risk
  6. 06MEDSmall franchise fee ($22.5K) relative to total investment suggests limited franchisor skin-in-the-game and quality control resources

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Protected territory
No
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
1 yrs
Post-termination restriction
Owner-operator
Required
Governing law
New York

Item 11

Training & Operations

Classroom training
8 hrs
On-the-job training
408 hrs
POS system
Annspire
Operating tech stack

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

36 numbers

Locked
(281) 201-••••
TX
(928) 681-••••
AZ
(440) 617-••••
OH

One-time purchase · CSV download · Validation questions included

FDD download

Taco Bell Express · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above