FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Mike's Red Tacos.
Based on 2025 FDD · 4 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Mike's Red Tacos franchise shows an estimated initial investment of $640K – $2.0M. Reported owner economics show $148K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $40K franchise fee · 8% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Mike's Red Tacos requires a total initial investment of $640K to $2.0M (midpoint approximately $1.3M), with an initial franchise fee of $40K. The ongoing fee burden is 8% (5% royalty plus 3% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.
According to Item 19 of the 2025 FDD, the median revenue for Mike's Red Tacos locations is $3.0M. The implied franchisee EBITDA is approximately $148K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 11.3% with a payback period of approximately 8.9 years.
Mike's Red Tacos operates approximately 0 franchised units.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
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