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Franchise Business Plan – Taco Bell

Updated 27.03.24 4 minutes read
CommercialIndustry Insights

Taco Bell Corp. (Taco Bell) is a fully owned subsidiary of Yum! Brands Inc. (Yum!), a Louisville, KY-based fast-food conglomerate. The first Taco Bell restaurant opened in California in 1962 and the company began franchising the restaurant concept almost immediately. The brand now has over 6,278 units in the United States, of which about 15.0% are company-owned. Taco Bell specializes in Mexican-style food products such as tacos, burritos, quesadillas, and nachos, and has recently branched out into breakfast.


Franchisees’ initial investment for opening a new Taco Bell restaurant can range from $525,100 to $2,622,400. The costs are slightly lower (between $175,000 and $1,400,000 million) for franchisees that acquire an existing Taco Bell restaurant. The franchisor also charges a $45,000 franchise fee, an ongoing royalty fee of 5.5% of gross sales, and a marketing fee equal to 4.25% of gross sales. Joorney Business Plans has extensive experience in developing long-term financial projections for Taco Bell restaurants and consulting franchisees regarding the required amount of the initial investment.


Taco Bell franchisees must devote their full time, efforts, and personal attention to daily restaurant operations. A franchisee or his/her authorized restaurant supervisor must successfully complete the training program. In addition to restaurant training courses, they are to attend the Starting Bell brand immersion course at the Restaurant Support Center in Irvine, CA. It is recommended that each franchise business should employ about 25 employees. Joorney Business Plan writers develop in-depth personnel plans and job descriptions, connecting the proposed employees’ knowledge and training to their assigned roles.

Financial Assistance

Through the YUM Minority Assistance Program, Taco Bell minority franchisees are offered financing options for purchasing an existing or developing a new restaurant. The YUM program guarantees 25% of the principal of the franchised business loan, up to a maximum of $3,000,000 per loan or franchisee. Joorney Business Plans develops comprehensive long-term financial projections that include the YUM program financing arrangements.


Each franchise should develop and administer advertising and sales promotion programs designed to promote and enhance the collective success of all Taco Bell restaurants. All franchisees have the right to actively participate in all advertising and sales promotion programs. However, only in complete accordance with terms and conditions established by the franchisor. Joorney Business Plan writers assist clients in developing extensive marketing and advertising strategies in line with the franchise agreement.


Under the franchise and the lease agreement, franchisees will be obliged to obtain multiple insurance types including worker’s compensation insurance, commercial general liability insurance, and employers’ liability insurance. Joorney Business Plans has extensive experience in including appropriate insurance expenses in the long-term financial projections.

Taco Bell’s United States sales grew at an annualized rate of 6.0% to $9.7 billion over the past five years. The company offers instant brand power as the world’s largest Mexican restaurant company. Taco Bell is an industry leader in innovation, offering the opportunity for stable growth and the opportunity to give back to the community.