Taco Rico / Taco Works Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Taco Rico is a fast-casual franchise serving Mexican tacos, burritos, and combo plates. Franchisees run the restaurants, managing food prep, staffing, and counter service.
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]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $155K – $341K
- 13th pct Service Resta…
- Avg gross sales
- N/A
- n=2
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 7
- 30th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · 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 $155K – $341K including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports historical outlet-level gross revenue and net profit for individual affiliate and franchised stores (2022-2024), not a system-wide statistical average/median/high/low table rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 70/100 (higher is better).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Taco Rico Franchise Corporation
- CEO title
- President and Chief Executive Officer
- Leland Neal
- Incorporated in
- Florida
- 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
- CEO
- Leland Neal
- Headquarters
- FL
- Founded
- 2014
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 62% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown16 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $155K – $341K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $25K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Bottom third — review 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
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 |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Taco Rico / Taco Works did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Taco Rico / Taco Works unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
45%
Within the 30–60% "attractive franchise" band
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: 2025 FDD
Financial Performance
Based on a sample of only 2
- Item 19 type
- historical outlet-level gross revenue and net profit for individual affiliate and franchised stores (2022-2024), not a system-wide statistical average/median/high/low table
- Sample size
- 2
- vs category median 20 · small
- Range (low → high)
- $1.1M→$1.7M
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-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
Total ongoing fee load of 6.0% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Item 19 reports historical outlet-level gross revenue and net profit for individual affiliate and franchised stores (2022-2024), not a system-wide statistical average/median/high/low table rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
Net unit growth of +50.0% over 3 years (1 opened, 0 closed).
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 Quick-Service Restaurants averages
How Taco Rico / Taco Works Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 43%
- vs corporate-owned
- Net growth (3-yr)
- +50.0%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
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.
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)
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 70 / 100 verdict
- 01MINORSmall 7-unit system, 3 franchised
- 02MINORNo litigation/bankruptcy/going-concern
- 03MEDItem 19 disclosed, avg gross $1.46M
- 04MEDFranchisor financial detail limited
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 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
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?
Taco Rico / Taco Works 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 Item 19 in the Taco Rico / Taco Works 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 Rico / Taco Works FDD and qualifies whose outlets they describe.
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 7 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 verdict score of 70 out of 100 (higher is better), 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
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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.