Taco Bell
Food & Beverage · Quick-Service Restaurants
- Active units
- 7,197
- Royalty
- 5.5%
Franchised, year-end 2023
of weekly Net Sales
About Taco Bell
Taco Bell is a renowned fast-food brand that caters to your cravings for delicious Mexican-inspired dishes. You can easily satisfy your appetite by ordering ahead through their convenient mobile app for pick up or delivery. With a wide array of flavorsome menu options, Taco Bell has something for everyone. One of their popular offerings is the Rolled Chicken Tacos, which feature succulent shredded chicken wrapped in a crispy exterior, creating a delightful combination of textures. These tantalizing treats are available in both 2-pack and 4-pack options. However, please note that they are only available for a limited time at participating Taco Bell locations, so be sure to check your local store for availability. Taco Bell also offers a rewarding loyalty program called Taco Bell Rewards, giving you the opportunity to earn exciting perks and benefits. Moreover, you can conveniently explore their menu, find nearby locations, and learn about their nutrition information and gift card options on their user-friendly website. Embrace your cravings and live más with Taco Bell, where bold flavors and great value meet in every bite.
Key terms
- Franchise fee
$45k
- Urban Test Incentive Program (In‑Line)
May waive the initial franchise fee and waive marketing fees for the first two years; reduces period franchise fee to 2.75% for first year
- National Program Incentive (Traditional)
May waive the initial franchise fee; may waive marketing fees for one to four years based on portfolio tier
- De‑Coupling Incentive Program (KT conversions)
May waive successor fee; reduces marketing fee to 2.25% for first year following conversion or upgrade
- Brand fund
4.3% of Net Sales
- Local advertising
5000.0% of Net Sales
- Market Build Out Agreement (development fee and missed-opening payments)
$45k
- 10K Trade Areas – Trade Area Fee (applied to initial franchise fee)
$25k
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2025 filing); filings on file: 2024, 2025.
Growth
- Total locations7349
Franchised units open at year-end
- New openings187
Gross new units opened during the calendar year
- 1-year unit growth rate2.1%
Net unit growth versus prior year
- 3-year unit CAGR2.1%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio20.8×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$3.1M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open21 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.5%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.