Taco Bell ExpressFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Taco Bell Express franchise requires a total initial investment of $287K – $856K, including a $23K franchise fee and an ongoing 10.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 6.1% charge-off rate across 160 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $287K – $856K
- 17th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 10.0%
- 45th pct Service Resta…
- Units
- 238
- 45th pct Service Resta…
- SBA default
- 6.1%
- 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
Franchising since 1964. Systems this mature have refined operations and brand recognition.
Franchised units fell from 232 to 224 over 3 years. Investigate why operators are leaving.
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.
- Verdict A (Top Quintile) with a risk score of 26/100. SBA loan charge-off rate of 6.1% across 160 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Taco Bell Franchisor, LLC
- Parent company
- YUM! Brands, Inc.
- Predecessor
- and intermediate corporate parent is Taco Bell Corp
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Sean Tresvant
- Incorporated in
- DE
- HQ
- 1 Glen Bell Way, Irvine, California 92618
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $652K
- vs $727K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- and a wholly owned subsidiary of TBC
- operates or franchises
Other brands the franchisor or its parent operates (Item 1).
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
- Headquarters
- CA
- Founded
- 1962
- FDD year
- 2025
- States available
- 38
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $23K | $23K |
| Working capital (3–6 mo) | $10K | $20K |
| Equipment, build-out, other | $255K | $813K |
| Total initial investment | $287K | $856K |
Source: Taco Bell Express 2025 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
- $287K – $856K
- Better than avg vs category
- Liquid capital req'd
- $10K – $20K
- Better than avg vs category
- Franchise fee
- $23K – $45K
- Better than avg vs category
- Royalty
- 10.0%
- Gross Sales · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Technology fee | $750 |
| Training fee | $350 |
| Transfer fee | $8K |
| Renewal fee | $11K |
| Total fee load | 10.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Taco Bell Express Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 238
- Opened
- 9
- Last reporting year
- Closed
- 11
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 3
- Term expired, not renewed (per Item 20)
- 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
3-year detail · Item 20
- Transfers (3yr)
- 7
- Transfer rate
- 2.9%
- Owners selling to other franchisees
- Termination rate
- 1.3%
- Franchisor-initiated terminations
- Ceased ops
- 4.6%
- 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 160
- Loan volume
- $88.5M
- Median loan
- $553K
- average
- Charge-off rate
- 6.1%
- 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
- 0.0%
- Loans approved 2021+
- Active lenders
- 59
- Defaults
- 7
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
Disclosed in last 7 years
No bankruptcy required to be 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
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 26 / 100 rating
- 01MINORUnit count declining 2.2% YoY (238 units) indicates system contraction and potential market saturation or franchisee exit issues
- 02MEDNo average revenue or net income disclosed (Item 19) prevents accurate ROI analysis and suggests franchisor may be hiding underperformance
- 03MINORWide investment range ($287K-$855K) with no profitability benchmarks creates uncertainty about break-even timeline and capital requirements
- 04MINORUnprotected territory exposes franchisees to direct competition from other Taco Bell Express units and parent company cannibalization
- 05MINOR10% royalty on gross sales (not net) is aggressive and burdensome during low-revenue periods, compounding cash flow risk
- 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| 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 |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 408 hrs
- Training location
- Approved Company Owned Unit
- Ongoing training
- Required
- Field support
- 350 hrs/yr
- On-site visits per year
- Time to open
- 5 mo
- From signing to launch
- POS system
- Annspire
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Annspire
Item 20 · call current owners
Franchisee Contacts
36 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Taco Bell Express · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Taco Bell Express franchise?
The total investment to open a Taco Bell Express franchise ranges from $287K – $856K, with an initial franchise fee of $23K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Taco Bell Express franchise owners earn?
Taco Bell Express 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 Taco Bell Express's franchise failure rate?
Based on SBA 7(a) loan data, Taco Bell Express has a charge-off rate of 6.1% across 160 loans, meaning 6.1% 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 Taco Bell Express franchise locations are there?
As of their most recent FDD filing, Taco Bell Express has 238 total units in the United States, including 232 franchised units and 14 company-owned units. 9 new units were opened in the latest reporting year.
Is Taco Bell Express a good franchise to buy?
FranchiseVerdict rates Taco Bell Express as a A-grade franchise with a risk score of 26 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.
For franchisors
Are you the franchisor?
If you represent Taco Bell Express, you can request corrections or provide updated information.
Claim this brandOther Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.