Taco Bell Franchise

Taco Bell, a Yum! Brands franchise, has been franchising since 1965 - 3 years after the concept was founded in 1962 , currently with 8,228 total locations (7,613 franchised, 615 company-owned, a 93% franchise-to-corporate ratio that signals the operator's reliance on independent owners) in the food & beverage sector, headquartered in CA. According to the 2024 FDD, the total initial investment ranges from $577K to $3.4M - a 484% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $25K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 5.5% of gross sales with an additional 4.3% national advertising fund contribution, bringing the combined ongoing cost to 9.8% of every dollar in sales. Critically, Taco Bell does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $1.7M, meaning the typical unit pays roughly $94K per year in royalty alone. Revenue is not profit, actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Network momentum is currently positive: Taco Bell added units at a 1.6% net rate year-over-year (250 openings, 120 closures). Sustained positive growth is a signal that the unit-economics are working well enough to attract new operators, though late-stage growth can also reflect aggressive sales push rather than operational health. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.