Bottom line
- Total investment $156K – $824K including a $30K franchise fee.
- Average unit revenue of $860K/year (median $825K).
- Rated MODERATE with a risk score of 60/100. SBA loan default rate of 0.0% across 17 loans (below the industry average).
- 20 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
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 TacoTime unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 TacoTime units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$860K
on $4.3M purchase
Total debt
$3.4M
SBA $2.2M + senior + seller note
Overview
About
TacoTime franchisees operate quick-service Mexican food restaurants, managing daily operations including food preparation, customer service, inventory management, and staff oversight. They handle POS systems, maintain brand standards, and manage local marketing while paying royalties based on gross sales or a weekly minimum fee to the franchisor.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
TacoTime presents high investment risk with a contracting franchise system, unresolved litigation history, undisclosed profitability metrics, and an aggressive royalty floor that may exceed cash flow on underperforming units.
Score breakdown · what drove the 60 / 100 rating
- 01MINORDeclining unit count (99 units, -2.0% YoY) indicates system contraction and weakening franchisee demand
- 02HIGHMultiple concluded litigations involving breach of contract and misrepresentation suggest franchisor credibility and operational integrity issues
- 03MINORNo average net income disclosure prevents assessment of actual profitability despite $860K average revenue
- 04MINORUnprotected territory creates cannibalization risk and franchisee competition within same market
- 05MEDDual royalty structure (6% or $400/week minimum) heavily burdens lower-revenue locations and provides limited upside protection
- 06HIGHGoing Concern flag is FALSE but litigation history raises questions about financial stability and long-term viability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
17 numbers
One-time purchase · CSV download · Validation questions included
FDD download
TacoTime · FDD (2025) PDF