Taco Bell, a subsidiary of the Yum fast food company, was founded in 1962 and currently maintains headquarters in Irvine, California. Taco Bell is only one of a select few fast food chains that offers Mexican style food options to customers. Taco Bell currently has plans to increase nationwide employment up to 100,000 individuals and 8,000 franchises by the end of 2023.
Taco Bell serves 42 million customers every week through nearly 7,000 franchise locations nationwide. Beyond the United States, Taco Bell maintains locations in Europe, Asia, South America and Canada. Most of Taco Bell’s franchisees own more than one location, and the franchise network includes 350 individuals across the country.
Taco Bell Franchise Costs and Expected Profit
At a minimum, Taco Bell requires prospective franchisees to have a net worth of at least $1.5 million, and liquid assets of $750,000. The total initial investment that must be made to open a location is between $1.17 million and $2.6 million, depending on the type of store and its location. This includes a franchise fee of between $70,000 and $95,000 owed before the location opens for business.
For net profits, Taco Bell franchise owners can expect to make between $80,000 and $100,000 per year per location. Many franchise owners decide to reinvest their earnings into additional Taco Bell locations to multiply their profits.
Pros of Owning a Taco Bell Franchise
One of the biggest pros mentioned by franchise owners is the profit margin average of nearly $100,000 for the first year. Taco Bell has made it increasingly easy for franchisees to make a profit because of the vast amount of advertising done nationwide on a daily basis.
Other Taco Bell franchise pros include having access to a vast network of entrepreneurs and being able to participate in a program that allows wholesale sourcing of discounted restaurant products on a national level.
Cons of Owning a Taco Bell Franchise
While the rewards for owning a Taco Bell franchise are outstanding, the cost of entry is extremely high for most individuals. Taco Bell also heavily screens franchise applicants by favoring those who have restaurant management experience in the past, which makes it difficult for other entrepreneurs to make an investment.
Once a franchise applicant is accepted, the individual must attend mandatory training at the company’s headquarters for an extended period of time while shouldering the costs of airfare and living expenses during their stay in California. Other franchises often pay for accommodations and airfare if they require owners to travel for training.