What are Taco Bell franchise royalty fees?

Taco Bell charges a 5.5% royalty fee on gross sales.

What is the Taco Bell franchise fee?

The initial franchise fee for Taco Bell is $45,000.

How many Taco Bell franchise locations are there?

There are approximately 7,198 Taco Bell franchise locations as of 2023.

How much profit does a Taco Bell franchise make?

Profit data for Taco Bell is disclosed in FDD Item 19 (Financial Performance Representation). Check their most recent Franchise Disclosure Document for current figures.

What is the SBA loan default rate for Taco Bell?

Taco Bell has an SBA loan default rate of 2.6% based on SBA 7(a) loan data.

Is a Taco Bell franchise worth it?

Whether a Taco Bell franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.

Scorecard Worth It?History Database Compare Distress Signals

QSRLimited DataItem 19: ✓ DisclosedHigh Confidence · 85/100

Taco Bell Franchise Cost and Profit

FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Taco Bell.

Based on 2025 FDD · 3 filings in corpus

FranchiseIQ Score

Moderate-Low Risk

Composite score from 3 risk dimensions. Click for breakdown ↓

Health Score

76/100

6/7 metrics · High confidence

Cost and profit at a glance

How much does a Taco Bell franchise cost and make?

Based on FDDIQ's FDD corpus, a Taco Bell franchise shows an estimated initial investment of $1.9M – $4.3M. The franchisor does not provide enough Item 19 data for a clean profit estimate. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.

Startup Cost

$1.9M – $4.3M

Total initial investment

Profit / Revenue

Item 19 not disclosed

FDD Item 19 signal

Payback Signal

Estimate unavailable

Modeled return metric

SBA Default Rate

2.6%

Loan repayment history

Compare franchise costs →Estimate franchise ROI →Check SBA default rates →Browse QSR franchises →Compare similar franchises →

Quick fee read: $45K franchise fee · 9.8% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.

10-brand free summary pilot · report unlocked

Taco Bell is in the free pilot, so the buyer-grade evidence is visible on this page.

Use this as a source-document screening summary: FDD investment range, royalty/ad burden, Item 19 economics, SBA repayment outcomes, unit movement, and comparable-brand context. Treat missing or low-confidence fields as diligence flags — not as blanks to ignore.

FDD-derived fieldsSBA matched where availableItem 19 labeledUnit movement checkedHigh confidence

What is unlocked

• Risk Engine rationale and sub-scores• Growth Forecast table when forecast data exists• Fee, cost, SBA, and comparable-brand context

Need another brand? Unlock the 10-report pack →Compare against the sample report

Total Investment Range$1.9M – $4.3M

MinMid: $3.1MMax

Key Metrics

Franchise Fee

$45K

Royalty Rate

5.5%

Ad Fund Rate

4.3%

Total Burden

9.8%

Royalty + ad fund

Units (2023)

7,198

+166 vs prior yr

Net Unit Growth

→ 2.4%

Year over year

Financial Analysis

Cash-on-Cash Return

Annual estimated return

Payback Period

Break-even timeline

SBA Default Rate

2.6%

vs ~7.2% industry avg

Median Revenue

Item 19 disclosed

Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Taco Bell vs. QSR Average

MetricTaco BellQSR Avg

SBA Default Rate2.6%▲9.4%

Cash-on-Cash Return - 14.2%

Total Investment$3.1M$380K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

SBA Loan Performance

Real lending data from SBA 7(a) loans (2010-2024). 42 loans across 20 states.

Default Rate

2.6%

Low Risk

Total SBA Loans

20 states

Total Loan Volume

$32.5M

SBA 7(a) approved

Avg Loan Size

$774K

Per franchisee

Loan Status Breakdown

Paid in Full (60%)

Currently Active

Charged Off (0.7% by $)

$229K

Total Charged Off ($)

● Paid● Active● Charged Off

Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.

Compare

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Multi-Brand Operators · Who Runs This Brand

Flynn Group

View Hub

San Francisco, CA· 2,850+ locations

460 locations of this brand