Taco Rico / Taco WorksFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Taco Rico / Taco Works franchise requires a total initial investment of $155K – $341K, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.6M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $155K – $341K
- 7th pct Service Resta…
- Avg gross sales
- $1.6M
- 16th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 8
- 18th pct Service Resta…
- SBA default
- N/A
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
Each dollar invested generates 6.3x in gross revenue, well above the typical 1.5-2.5x range.
109% cash-on-cash return. Above the 20% threshold most investors target.
Bottom line
- Total investment $155K – $341K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.6M/year, with an estimated 109% cash-on-cash return.
- Verdict A (Top Quintile) with a risk score of 16/100.
- 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 Rico Franchise Corporation
- Incorporated in
- FL
- HQ
- 8688 NW 13 Terrace, Doral, Florida 33126
- Auditor
- Antonio Diaz
- Audited financials
- Franchisor revenue
- $181K
- vs $215K prior year
Affiliated brands
- owned stores as well as our current franchise locations operate under the name Taco Rico
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Taco Rico/Taco Works franchisees operate fast-casual Mexican food restaurants serving tacos, burritos, and related items. Daily operations include food preparation, inventory management, customer service, and point-of-sale management in a limited-service format with dine-in and/or takeout options.
- CEO
- Leland Neal
- Headquarters
- FL
- Founded
- 2014
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $50K | $50K | |
| Travel and Living Expenses While Training | $300 | $6K | |
| Utility Fees, Real Estate Lease and Utility Deposits | $11K | $17K | |
| Equipment | $18K | $78K | |
| Signage | $6K | $9K | |
| Other Equipment including TVs, Cameras and Computer System | $2K | $4K | |
| POS System | $7K | $7K | |
| Decor and Furniture | $4K | $6K | |
| Construction of Leasehold Improvements | $30K | $113K | |
| Inventory and Supplies | $5K | $7K | |
| Grand Opening Advertising | $1K | $4K | |
| Licenses and Permits | $2K | $3K | |
| Architectural and Engineering | $2K | $5K | |
| Attorneys and Accountants | $0 | $2K | |
| Insurance (For first 3 months) | $3K | $7K | |
| Additional Funds (3 months) | $15K | $25K | |
| Total initial investment | $155K | $342K |
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
$187K
12.0% margin
Unlevered ROIC
70%
EBITDA / total invested capital
Payback
17 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $155K – $341K
- Better than avg vs category
- Liquid capital req'd
- $15K – $25K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
- Payback period
- 0.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $79 |
| Transfer fee | $5K |
| Renewal fee | $50K |
| Inventory (initial) | $5K – $7K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.6M
- Per unit, per year
- Median gross sales
- N/A
- Avg net profit
- $271K
- Reported as Net Profit in FDD Item 19
- Cash-on-cash
- 109.2%
- Based on Net Profit / investment midpoint
- Item 19 type
- Affiliate and Franchised performance
- Sample size
- 8 units
- vs category median 13
- Range (low → high)
- $549K→$1.8M
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
Revenue is 6.3x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Full-Service Restaurants averages
How Taco Rico / Taco Works Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 8
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
- Net growth (yr3)
- +50.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage, rapidly growing franchise with unverified financials, no going concern assurance, and insufficient unit history to validate ROI claims.
Litigation (Item 3)
0 case reference(s): 2 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
BANKRUPTCY Neither the franchisor, its affiliate, its predecessor, officers, or general partner during the 10- year period immediately before the date of the offering circular: (a) filed as debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code; (b) obtained a
Audited financials (Item 21)
Yes · Antonio Diaz
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 16 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates potential financial instability or operational uncertainty at franchisor level
- 02MEDSmall unit count (8 locations) with only 50% YoY growth suggests nascent/unproven system with limited track record
- 03MEDNo Item 19 financial performance representation disclosed — cannot independently verify claimed $1.56M avg revenue or $270K avg net income
- 04MINORHigh investment range ($154.8K–$340.8K) against small unit sample creates validation risk
- 05MINORRapid growth trajectory (50% YoY) may not be sustainable and could mask underlying operational or financial stress
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/Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 2 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 116 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- Duo Clover System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Duo Clover System
Item 20 · call current owners
Franchisee Contacts
17 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Taco Rico / Taco Works · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Taco Rico / Taco Works franchise?
The total investment to open a Taco Rico / Taco Works franchise ranges from $155K – $341K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Taco Rico / Taco Works franchise owners earn?
According to Item 19 of the Taco Rico / Taco Works FDD, the average gross sales per unit is $1.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Taco Rico / Taco Works's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Taco Rico / Taco Works (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 Rico / Taco Works franchise locations are there?
As of their most recent FDD filing, Taco Rico / Taco Works has 8 total units in the United States, including 3 franchised units and 4 company-owned units. 1 new units were opened in the latest reporting year.
Is Taco Rico / Taco Works a good franchise to buy?
FranchiseVerdict rates Taco Rico / Taco Works as a A-grade franchise with a risk score of 16 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.