Taco Bell
Mexican-inspired food- 2023 Franchise 500 Rank
-
#1 Ranked #1 last year
- Initial investment
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$576K - $3.4M
- Units as of 2022
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7,900 10.7% over 3 years
From a hot chalupa to their signature sauce, Taco Bell is the largest purveyor of Mexican cuisine in the world. As one of the top quick-service restaurant franchises, Taco Bell is known for serving Mexican-style food quickly and at a low price. You can get their tasty tacos at over 7,000 locations across 30 different countries.
Taco Bell is a subsidiary of Yum! Brands, Inc., which also owns several other recognizable franchises. Yum! Brands Inc. operates over 43,000 restaurant locations across 135 nations and territories.
Taco Bell was founded in 1962 and began franchising two years later. It has since grown into one of the most recognizable brands in the world.
Why You May Want to Open a Taco Bell Franchise
Taco Bell may be one of the best franchises to own. To qualify to open a Taco Bell franchise, you need to meet the company’s minimum net worth and liquid capital requirements. You should also prepare yourself for an initial investment made up of a franchise fee and other startup costs. In addition, you need not forget about ongoing fees that will include royalty and advertising fees.
What May Make a Taco Bell Franchise a Good Choice?
Taco Bell has been ranked near the top of Entrepreneur’s Franchise 500 list many times in recent decades. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
Taco Bell is one of the most popular and recognizable brands in the U.S., which means that you may have a leg up on the competition. They're also aggressively expanding into the global market, which may create a great opportunity for entrepreneurs around the world to open a Taco Bell franchise close to home. Whether you live in or outside of the U.S., Taco Bell may be one of the best franchise organizations to open.
How Do You Open a Taco Bell Franchise?
First, you have to submit your application. If you're approved, then you'll participate in the Taco Bell franchise training program. This program will likely take several weeks. After that, they will begin construction on the new building. Taco Bell locations can require multiple months to complete construction.
Once your Taco Bell franchise location is ready to go, you'll be responsible for ensuring everything runs smoothly leading up to the opening of the restaurant. You can hire a manager to handle these duties, but if you decide to manage it yourself, one of the most important steps is staffing your restaurant.
Taco Bell may be easy to hire for. Because of this, many of your employees are likely to be young and new to the workforce. With the caveat that ages differ in some states, you can hire employees as young as 16 in most places in the U.S. After hiring some staff, you can begin preparing for your grand opening.
And that's it! Taco Bell strives to make opening a new franchise as seamless as possible. Once you have your restaurant staffed and open for business, you can proudly call yourself the owner of a brand new Taco Bell franchise.
Company Overview
About Taco Bell
Business Overview
- Franchising Since
- 1964 (2023-1964 years)
- # of employees at HQ
- 704
- Where seeking
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This company is offering new franchisees throughout the US.
This company is offering new franchisees in the following international regions: Asia, Australia/New Zealand, Middle East, Europe (Eastern), Europe (Western), Central America, Canada, South America
- # of Units
- 7,900 (as of 2022)
Information for Franchisees
Here's what you need to know if you're interested in opening a Taco Bell franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
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Initial Franchise Fee
Information Circle - $25,000 - $45,000
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Initial Investment
Information Circle - $575,600 - $3,370,100
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Net Worth Requirement
Information Circle - $5,000,000
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Cash Requirement
Information Circle - $2,000,000
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Royalty Fee
Information Circle - 5.5%
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Ad Royalty Fee
Information Circle - 4.25%
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Term of Agreement
Information Circle - 25 years
- Is franchise term renewable?
- No
Financing Options
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Taco Bell has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 400 hours
- Classroom Training
- 8 hours
- Ongoing Support
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NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
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Ad TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Operations
Additional details about running this franchise.
- Is absentee ownership allowed?
- No
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Can this franchise be run from home/mobile unit?
Information Circle - No
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Can this franchise be run part time?
Information Circle - No
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Are exclusive territories available?
Information Circle - No
Interested in ownership opportunities like Taco Bell? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Taco Bell landed on this year's Franchise 500 Ranking versus previous years.
Additional Rankings
Curious to know where Taco Bell ranked on other franchise lists? Find out below.
Ranked #1 in 2023
Entrepreneur’s 44th annual Franchise 500® ranking shines a light on the unique challenges and changes that have shaped the franchise industry over the last year—and how franchisors have adapted and evolved to meet them.
Ranked #8 in 2023
Meet the companies that are leveraging their ability to scale fast across the U.S. and Canada in Entrepreneur's annual fastest-growing franchises ranking.
Ranked #3 in 2023
Top Global Franchises
Ranked #1 in Mexican Food in 2022
Our annual list of the top restaurant and other food franchises, divided up by category, is the perfect place to start if you’re craving a food-based business opportunity.
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