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

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

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

Section III – Number of franchised and company-owned Taco John’s 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 Taco John’s franchise opportunity

Section V – Presentation and analysis of Taco John’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, high, and low sales, by quartile, for the 277 franchised freestanding traditional Taco John’s Restaurants with drive-thru windows that reported sales to Taco John’s through its approved Point of Sale System for all of calendar year 2023

• 2023 average, median, high, and low sales, by quartile, for the 28 franchised endcap traditional Taco John’s Restaurants with drive-thru windows that reported sales to Taco John’s through its approved Point of Sale System for all of calendar year 2023

• 2023 average, median, high, and low sales, by quartile, for the 23 franchised Taco John’s Restaurants in convenience stores or travel plazas with drive-thru windows that reported sales to Taco John’s through its approved Point of Sale System for all of calendar year 2023

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

Section I – Taco John’s Franchise Costs

• Initial Franchise Fee:  $20,000 to $25,000
• Real Estate Purchase or Lease:  Varies
• Site Preparation and Completion Costs:  $250,000 to $500,000
• Construction Costs:  $650,000 to $900,000
• Operating Equipment:  $185,000 to $250,000
• Furniture, Fixtures, and Decor:  $35,000 to $55,000
• Signage and Installation:  $30,000 to $70,000
• Point of Sale System:  $20,000 to $35,000
• Digital Menu Boards:  $35,000 to $65,000
• Initial Inventory:  $15,000 to $22,000
• Grand Opening Marketing:  $10,000 to $12,000
• Pre-Opening Training (Travel and Living Expenses):  $35,000 to $45,000
• Miscellaneous Opening Costs:  $20,000 to $60,000
• Additional Funds:  $25,000 to $40,000
• Total Estimated Initial Investment (without real estate costs):  $1,330,000 to $2,079,000

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

• Initial Franchise Fee:  $20,000 to $25,000
• Royalty:  5% of Net Sales
• Advertising and Marketing Fees:  4% of Net Sales for traditional Restaurants; 2% of Net Sales for non-traditional Restaurants

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

Franchised

2021

• Outlets at the Start of the Year:  378
• Outlets at the End of the Year:  367
• Net Change:  -11

2022

• Outlets at the Start of the Year:  367
• Outlets at the End of the Year:  361
• Net Change:  -6

2023

• Outlets at the Start of the Year:  361
• Outlets at the End of the Year:  357
• Net Change:  -4

Company-Owned

2021

• Outlets at the Start of the Year:  11
• Outlets at the End of the Year:  6
• Net Change:  -5

2022

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  7
• Net Change:  +1

2023

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  7
• Net Change:  0

Section IV – News Updates on the Taco John’s Franchise

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

Charts of Per Franchised Restaurant Average Sales and Actual Sales

• Included in the charts below are all of the 328 franchised Taco John’s Restaurants with drive-thru windows that operated for all of calendar year 2023 and reported their sales to Taco John’s through its approved Point of Sale System (or an alternative reporting method that Taco John’s believes to be accurate and has approved) for all of calendar year 2023.

Part 1 – Average Sales of Freestanding Traditional Taco John’s Restaurants with Drive-Thru Windows During Calendar Year 2023

Top Quartile

• Number of Restaurants in Group:  70
• Average Sales:  $1,844,833
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  31 (44.3%)
• High Performer:  $3,318,043
• Median Performer:  $1,776,889
• Low Performer:  $1,437,554

Second Quartile

• Number of Restaurants in Group:  69
• Average Sales:  $1,285,618
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  30 (43.5%)
• High Performer:  $1,434,585
• Median Performer:  $1,264,130
• Low Performer:  $1,166,672

Third Quartile

• Number of Restaurants in Group:  69
• Average Sales:  $1,038,693
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  35 (50.7%)
• High Performer:  $1,153,480
• Median Performer:  $1,044,846
• Low Performer:  $914,168

Lower Quartile

• Number of Restaurants in Group:  69
• Average Sales:  $758,397
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  39 (56.5%)
• High Performer:  $906,378
• Median Performer:  $788,521
• Low Performer:  $498,315

Combined

• Number of Restaurants in Group:  277
• Average Sales:  $1,234,098
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  135 (49.8%)
• High Performer:  $3,318,043
• Median Performer:  $1,166,672
• Low Performer:  $498,315

Part 2 – Average Sales of Endap Traditional Taco John’s Restaurants with Drive-Thru Windows During Calendar Year 2023

Top Quartile

• Number of Restaurants in Group:  7
• Average Sales:  $1,492,131
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  3 (42.9%)
• High Performer:  $1,690,930
• Median Performer:  $1,447,382
• Low Performer:  $1,297,787

Second Quartile

• Number of Restaurants in Group:  7
• Average Sales:  $1,190,417
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  4 (57.1%)
• High Performer:  $1,247,456
• Median Performer:  $1,199,906
• Low Performer:  $1,117,577

Third Quartile

• Number of Restaurants in Group:  7
• Average Sales:  $965,314
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  4 (57.1%)
• High Performer:  $1,071,003
• Median Performer:  $972,750
• Low Performer:  $870,558

Lower Quartile

• Number of Restaurants in Group:  7
• Average Sales:  $693,584
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  5 (71.4%)
• High Performer:  $824,072
• Median Performer:  $775,240
• Low Performer:  $455,932

Combined

• Number of Restaurants in Group:  28
• Average Sales:  $1,076,255
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  15 (53.6%)
• High Performer:  $1,690,930
• Median Performer:  $1,094,290
• Low Performer:  $455,932

Part 3 – Average Sales of Taco John’s Restaurants in Convenience Stores or Travel Plazas with Drive-Thru Windows During Calendar Year 2023

Top Quartile

• Number of Restaurants in Group:  6
• Average Sales:  $1,491,117
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  2 (33.3%)
• High Performer:  $1,991,302
• Median Performer:  $1,452,982
• Low Performer:  $1,196,843

Second Quartile

• Number of Restaurants in Group:  6
• Average Sales:  $935,217
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  2 (33.3%)
• High Performer:  $1,134,628
• Median Performer:  $899,679
• Low Performer:  $827,499

Third Quartile

• Number of Restaurants in Group:  6
• Average Sales:  $743,087
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  2 (33.3%)
• High Performer:  $785,355
• Median Performer:  $732,282
• Low Performer:  $708,731

Lower Quartile

• Number of Restaurants in Group:  5
• Average Sales:  $551,988
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  2 (40.0%)
• High Performer:  $705,756
• Median Performer:  $520,613
• Low Performer:  $442,300

Combined

• Number of Restaurants in Group:  23
• Average Sales:  $946,803
• Number and Percentage of Restaurants in the Group That Met or Exceeded the Average Sales of the Group:  11 (47.8%)
• High Performer:  $1,991,302
• Median Performer:  $827,499
• Low Performer:  $442,300

• Taco John’s had a total of 357 franchised Taco John’s Restaurants in its system as of December 31, 2023.

• Of those, 1 Restaurant does not report its sales through Taco John’s approved Point of Sale System (or an Approved Alternative System), and 12 Restaurants do not have drive-thru windows as part of their Restaurants. Because the restaurant models Taco John’s is offering under the Disclosure Document require the use of its approved Point of Sale System and are expected to have a drive-thru window, Taco John’s did not include those Restaurants in these charts.

• Further, 14 of Taco’s John’s franchised Restaurants did not operate for the full 2023 calendar year, comprised of Restaurants that opened or closed permanently during 2023, or were closed for part of the year due to remodeling. None of the outlets that closed permanently in calendar year 2023 had been open for less than 12 months. Two additional locations are considered prototypes of the Drive Thru Olé concept and are not included in these charts.

• Taco John’s also had a total of seven company-owned Taco John’s Restaurants that operated for the full 2023 calendar year that are not included in these charts.

• “Sales” means the total receipts of the Restaurant, but does not include sales tax or equivalent taxes.

• The Taco John’s Restaurants included in these charts sell substantially the same products and services as the franchised Taco John’s Restaurants offered pursuant to the Disclosure Document.

• As of the start of calendar year 2023, the Taco John’s Restaurants included in these charts had been in operation for periods ranging from one year to 55 years.

• There is a large variation in the range of sales generated by Taco John’s franchisees during calendar year 2023. During calendar year 2023, sales by the Taco John’s Restaurants reported in these charts varied from a high of $3,318,043 to a low of $442,300.

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