If you are a Taco Tuesday fan, you are going to love a Fuzzy Taco franchise. With an approachable business format that allows for flexibility, it’s no wonder why there are so many of these franchises expanding across the US.
A Fuzzy Taco franchise will cost you an average of $800,000 to start. Your first Fuzzy Taco location will cost you on the low end $500,000 and on the high end $1,300,000.
This range considers the size of your location, build-out cost, fees, initial inventory, equipment, and the specific location you choose.
Your first Fuzzy Taco franchise fee is $35,000, which decreases each time you open a new spot.
If you are a taco enthusiast, this may be the perfect business opportunity for you. If opening a Fuzzy Taco franchise sounds like it may be a good fit, you should continue reading for more information.
- Cost to Open a Fuzzy Taco Franchise
- Initial Franchise Fee ($35k)
- Land Cost ($75k – $200k)
- Build-out Cost ($300k – $500k)
- Startup Inventory ($25k – $75k)
- Business Licenses and Permits ($2.5k – $10k)
- Accounting and Legal Fees ($5k – $10k)
- Equipment ($80k – $250k)
- Equipment Maintenance and Repairs ($5k – $15k)
- Initial Payroll ($25k – $40k)
- Employee Health Benefits ($10k – $18k)
- General Liability Insurance ($7k-$11k)
- Utilities ($1.5k – $3.5k)
- Initial Advertising Cost ($10k – $30k)
- Ongoing Franchise Fees (5%- 8%)
- Miscellaneous Expenses ($5k – $12k)
- Is Fuzzy Taco Right For You?
- Related Guides
Cost to Open a Fuzzy Taco Franchise
If you are thinking about opening a Fuzzy Taco franchise, you will need to know more details about the cost of starting one.
The initial costs of owning your own taco restaurant include the initial expenses required to begin operations. These expenses range from equipment and maintenance to inventory and payroll.
You can expect that you will pay for your Fuzzy Taco franchise fee, build-out cost, start-up inventory, equipment, and initial payroll with the money from your start-up funds.
You must factor in all expenses related to opening a Fuzzy Taco franchise before you consider starting one.
Initial Franchise Fee ($35k)
The initial Fuzzy Taco franchise fee is $35,000, allowing you to begin using their brand and business model. This fee will decrease if you open up another location in the same area.
Your second location will cost you $30,000, and if you decide that you want a third, it will cost you $25,000.
Land Cost ($75k – $200k)
Your Fuzzy Taco franchise cost does not include the price of your land.
Many factors influence commercial real estate prices, but you should expect to pay between $75,000 and $200,000 for land, which will depend on the site you choose.
Build-out Cost ($300k – $500k)
You will have to have a restaurant built to Fuzzy Taco specifications. The interior will have to comply with specific design standards, and the exterior needs to be attractive enough to entice your target market.
A build-out for a 3,500 sq. ft. place can cost you anywhere from $300,000 to $500,000, depending on the structure’s condition that you purchase.
Startup Inventory ($25k – $75k)
Your initial inventory purchase for a Fuzzy Taco franchise ranges from $25,000 to $75,000. This will cover your cost to make some delicious tacos and set you up for the opening day.
You should always expect to invest more money into inventory than you actually make in the first few months until your restaurant becomes profitable. That is why it is crucial to have a Fuzzy Taco franchise business plan.
Business Licenses and Permits ($2.5k – $10k)
You will need to have a business license and permits for your Fuzzy Taco franchise. You need to contact local authorities about the licensing requirements that apply to your restaurant.
You can get this information from your franchiser. The average cost of these licenses and permits can range from $2,500 to $10,000.
Accounting and Legal Fees ($5k – $10k)
You can expect that legal and accounting fees will cost you anywhere from $5,000 to $10,000 the first year. These will help you maintain all of your Fuzzy Taco records and make sure that they comply with federal, state, and local laws.
Equipment ($80k – $250k)
The equipment required for a Fuzzy Taco franchise can cost you anywhere from $80,000 up to $250,000.
If you are looking to save money, you can purchase used equipment for your restaurant. Just make sure it is in good condition and complies with local health codes.
Some of the equipment needed to run a Fuzzy Taco franchise includes
Walk In Freezer – $5,000 to $15,000 (depends on size)
Refrigerator – $3,000 to $5,000
Ice machine – $2,500 to $5,000
Grill – $1,500 to $3,500
Fryer- $2,000 to $10,000
Steamer – $1,500 to $5,000
Blender – $400 to $800
Stand Mixer- $200 to $700
Miscellaneous Equipment – Approximately 10 percent of your equipment costs. You will have to expect delivery fees, installation fees, or moving expenses.
Equipment Maintenance and Repairs ($5k – $15k)
You will need to protect your equipment with a good warranty and plans for maintenance and repairs. If you neglect the upkeep of your equipment, it will cause more downtime, which can add up quickly in terms of lost revenue.
You should expect to spend around $5,000 to $15,000 on equipment maintenance and repairs each year of business.
Initial Payroll ($25k – $40k)
You will need to hire employees for your Fuzzy Taco franchise. You will need to pay their initial wages and training.
You should expect your initial payroll costs for the first 60 days to be between $25,000 and $40,000, depending on the number of employees you hire.
The restaurant industry is one of the top industries for labor costs because it has such a high turnover rate. You can save money by paying higher wages, in the beginning, to keep your employees loyal and satisfied.
Employee Health Benefits ($10k – $18k)
Your Fuzzy Taco franchise cost does not include employee health benefits. This is something you will need to pay on top of your business expenses for employees.
You should expect to spend $8,000 to $18,000 on health insurance for your first year of business based on the number of full-time employees that work for you.
This price can go up if you have a lot of employees, so do not forget to add this cost in when you are preparing your budget.
General Liability Insurance ($7k-$11k)
Your Fuzzy Taco franchise cost does not include General Liability Insurance. This insurance will cost you from $7,000 to $11,000, depending on the number of employees and your location.
You will need to have $1 million in coverage for general liability claims with an additional $5,000 that covers your employees if they are involved in a lawsuit.
This policy protects you and your restaurant from accidents, so you’ll want to make sure you have the appropriate amount of coverage.
Utilities ($1.5k – $3.5k)
You can expect your utilities to cost you between $1,500 and $3,500 every month on average. This will vary based on the size of your restaurant and weather conditions.
For example, the heating and cooling costs in winter are much higher when compared to spring or fall. Your utility expenses for a year will cost approximately $30,000 if you stay on average with this estimate.
Initial Advertising Cost ($10k – $30k)
The cost for advertising starts long before you open your doors. It is essential to build a strong brand image in the beginning so that people will return for more delicious tacos after they try them for the first time.
Some of these costs will be sent directly to Fuzzy Taco, and others will be approved marketing that you will need to pay for.
Your grand opening marketing expenses will range from $10,000 to $30,000. There is also a 2% ad royalty fee that you will need to pay to Fuzzy Taco.
Ongoing Franchise Fees (5%- 8%)
The ongoing royalty fee for a Fuzzy Taco franchise is 5% to 8%, depending on how many establishments you have and total revenue. An ongoing royalty fee of 2% – 6% will be accessed to gross sales in addition to a 2% royalty for corporate advertising.
Miscellaneous Expenses ($5k – $12k)
Your total Fuzzy Taco franchise cost also includes miscellaneous expenses that will range from $5,000 to $12,000.
These expenses include business travel, stationery and postage costs, toiletries, training materials for employees, and marketing material creation.
These expenses should not be overlooked because they can add up quickly.
Is Fuzzy Taco Right For You?
There is a lot to think about when starting your own Fuzzy Taco franchise. It’s essential to go in with an understanding of how much it will cost and what the benefits are.
There are currently over 150+ Fuzzy Taco locations in the United States, and this number continues to grow each year. The company was founded in 2003 in Fort Worth, Texas.
They use an in-house chef to perfect the menu and offer gluten-free options to accommodate anyone with dietary restrictions.
Make sure you do your research before starting your own Fuzzy Taco franchise. It’s necessary to understand all of the expenses required before moving forward with the process.
People who start this kind of business should know their way around operating costs and expenses and have a passion for being involved in their restaurants’ community.
The Fuzzy Taco franchise is a good idea for someone with prior restaurant experience and enough money to start this kind of business.
In total, you should expect to pay around $800,000 to open up your Fuzzy Taco franchise.