In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Fuzzy’s Taco Shop franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Fuzzy’s Taco Shop franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Fuzzy’s Taco Shop outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Fuzzy’s Taco Shop franchise opportunity

Section V – Presentation and analysis of Fuzzy’s Taco Shop’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, lowest, and highest gross sales for the 68 Fuzzy’s Taco Shop traditional restaurants in Texas (which has a higher concentration of Fuzzy’s Restaurants than the rest of the United States) that were active and operating as of December 31, 2023, by quartile and overall

• 2023 average, median, lowest, and highest gross sales for the 56 Fuzzy’s Taco Shop traditional restaurants in the rest of the U.S. that were active and operating as of December 31, 2023, by quartile and overall

Section VI – Key ratios, comparables, computations, and analyses for the Fuzzy’s Taco Shop franchise opportunity (exclusive content for Platinum subscribers)

Section I – Fuzzy’s Taco Shop Franchise Costs

• Initial Franchise Fee:  $40,000
• Rent, Security Deposits (1-2 months), Utility Deposits, and Business Licenses:  $10,000 to $20,000
• Architect and Design Fees:  $10,000 to $18,000
• Leasehold Improvements:  $300,000 to $750,000
• Furniture, Fixtures, and Signage:  $44,000 to $95,000
• Equipment and Smallwares:  $112,500 to $350,000
• Point-of-Sale, Computer, Kitchen Display System, EMV, and Digital Menu Board:  $36,000 to $50,000
• Office Equipment and Supplies:  $1,000 to $2,500
• Professional Fees:  $2,500 to $15,000
• Initial Sauce Inventory:  $400 to $600
• Other Initial Inventory:  $27,600 to $42,400
• Insurance:  $15,000 to $30,000
• Pre-Opening Training Expenses:  $8,000 to $25,000
• Grand Opening Advertising:  $15,000
• Additional Funds (3 Months):  $20,000 to $70,000
• Total Estimated Fuzzy’s Taco Shop Franchise Costs:  $642,000 to $1,523,500

Section II – Fuzzy’s Taco Shop’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $40,000
• Royalty Fee:  5% of Gross Sales
• Development Fund:  2% of Gross Sales
• Local Store Marketing Fee:  there is no currently required local store marketing fee
• Advertising Cooperative:  amount determined by majority vote of cooperative (each Restaurant getting one vote, including company and affiliate-owned Restaurants)

Section III – Number of Franchised and Company-Owned Fuzzy’s Taco Shop Outlets

Franchised

2021

• Outlets at the Start of the Year:  135
• Outlets at the End of the Year:  134
• Net Change:  -1

2022

• Outlets at the Start of the Year:  134
• Outlets at the End of the Year:  134
• Net Change:  0

2023

• Outlets at the Start of the Year:  134
• Outlets at the End of the Year:  131
• Net Change:  -3

Company-Owned

2021

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  3
• Net Change:  -2

2022

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

2023

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  1
• Net Change:  -2

Section IV – News Updates on the Fuzzy’s Taco Shop Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Fuzzy’s Taco Shop Franchise (Item 19, 2024 FDD)

Part 1 – Historical Gross Sales of Traditional Franchised Restaurants for the State of Texas and for the Rest of the United States

• Part 1 contains historic average, median, high, and low gross sales for the 12-month period of January 1, 2023 to December 31, 2023.

• Fuzzy’s Taco Shop included all franchised traditional Fuzzy’s Restaurants that were active and operating as of December 31, 2023; except it excluded all 6 non-traditional Restaurants and 1 Taqueria Restaurant as their format and/or menu offerings are different from the franchised traditional Fuzzy’s Restaurants reported on below.

• The restaurants are organized based on their location in the State of Texas (which has a higher concentration of Fuzzy’s Restaurants than the rest of the United States) or the rest of the United States.

Texas

• Number of Restaurants:  68
• Annualized Average Gross Sales:  $1,390,778
• Number and Percentage of Units That Exceeded Average Gross Sales:  26/38%
• Median Gross Sales:  $1,261,003
• High Gross Sales:  $2,565,548
• Low Gross Sales:  $523,782

Rest of U.S.

• Number of Restaurants:  56
• Annualized Average Gross Sales:  $1,999,570
• Number and Percentage of Units That Exceeded Average Gross Sales:  27/48%
• Median Gross Sales:  $1,805,703
• High Gross Sales:  $4,500,591
• Low Gross Sales:  $729,243

Part 2 – Historical Gross Sales of Traditional Franchised Restaurants for the State of Texas by Quartiles

• Part 2 contains historic average, median, high, and low gross sales for the 12-month period of January 1, 2023 to December 31, 2023.

• Fuzzy’s Taco Shop included all franchised traditional Fuzzy’s Restaurants located in the State of Texas (which has a higher concentration of Fuzzy’s Restaurants than the rest of the United States) that were active and operating as of December 31, 2023; except it excluded all 4 non-traditional Restaurants located in Texas as their format and/or menu offerings are different from the franchised traditional Fuzzy’s Restaurants reported on below.

• The restaurants are organized into four quartiles in descending order, with the first quartile comprising the Restaurants that generated the highest gross sales and the fourth quartile comprising the Restaurants that generated the lowest gross sales.

1st Quartile

• Number of Restaurants:  8
• Annualized Average Gross Sales:  $2,259,715
• Number and Percentage of Units That Exceeded Average Gross Sales:  4/50%
• Median Gross Sales:  $2,241,455
• High Gross Sales:  $2,565,548
• Low Gross Sales:  $2,030,671

2nd Quartile

• Number of Restaurants:  19
• Annualized Average Gross Sales:  $1,644,086
• Number and Percentage of Units That Exceeded Average Gross Sales:  8/42%
• Median Gross Sales:  $1,587,564
• High Gross Sales:  $2,007,819
• Low Gross Sales:  $1,376,320

3rd Quartile

• Number of Restaurants:  21
• Annualized Average Gross Sales:  $1,228,028
• Number and Percentage of Units That Exceeded Average Gross Sales:  10/48%
• Median Gross Sales:  $1,220,468
• High Gross Sales:  $1,355,456
• Low Gross Sales:  $1,122,874

4th Quartile

• Number of Restaurants:  20
• Annualized Average Gross Sales:  $973,448
• Number and Percentage of Units That Exceeded Average Gross Sales:  15/75%
• Median Gross Sales:  $1,053,306
• High Gross Sales:  $1,115,564
• Low Gross Sales:  $523,782

Part 3 – Historical Gross Sales of Traditional Franchised Restaurants for the United States, Excluding the State of Texas, by Quartiles

• Part 3 contains historic average, median, high, and low gross sales for the 12-month period of January 1, 2023 to December 31, 2023.

• Fuzzy’s Taco Shop included all franchised traditional Fuzzy’s Restaurants located in the United States, excluding the State of Texas (which has a higher concentration of Fuzzy’s Restaurants than the rest of the United States), that were active and operating as of December 31, 2023; except it excluded all 2 non-traditional Restaurants and 1 Taqueria Restaurant located outside of Texas as their format and/or menu offerings are different from the franchised traditional Fuzzy’s Restaurants reported on below.

• The restaurants are organized into four quartiles in descending order, with the first quartile comprising the Restaurants that generated the highest gross sales and the fourth quartile comprising the Restaurants that generated the lowest gross sales.

1st Quartile

• Number of Restaurants:  25
• Annualized Average Gross Sales:  $2,811,842
• Number and Percentage of Units That Exceeded Average Gross Sales:  9/36%
• Median Gross Sales:  $2,533,858
• High Gross Sales:  $4,500,591
• Low Gross Sales:  $2,028,551

2nd Quartile

• Number of Restaurants:  12
• Annualized Average Gross Sales:  $1,701,331
• Number and Percentage of Units That Exceeded Average Gross Sales:  6/50%
• Median Gross Sales:  $1,693,833
• High Gross Sales:  $2,195,447
• Low Gross Sales:  $1,388,091

3rd Quartile

• Number of Restaurants:  12
• Annualized Average Gross Sales:  $1,235,883
• Number and Percentage of Units That Exceeded Average Gross Sales:  6/50%
• Median Gross Sales:  $1,216,034
• High Gross Sales:  $1,386,888
• Low Gross Sales:  $1,129,280

4th Quartile

• Number of Restaurants:  7
• Annualized Average Gross Sales:  $919,044
• Number and Percentage of Units That Exceeded Average Gross Sales:  3/43%
• Median Gross Sales:  $892,622
• High Gross Sales:  $1,085,573
• Low Gross Sales:  $729,243

• Fuzzy’s Taco Shop compiled the gross sales data included in Parts 1 through 3 above from information submitted to it by its franchisees for royalty reporting. These amounts are not audited.

• Some outlets have earned these amounts. Your individual results may differ. There is no assurance that you will earn as much.

Section VI – Fuzzy’s Taco Shop Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️