Fuzzy's Taco Shop Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$22,000 - $1,555,500
Franchise Fee
$10,000
Total US Locations
117
Business Summary
Fuzzy's Taco Shop operates fast-casual Mexican food restaurants under the name FUZZY'S TACO SHOP®. The restaurants feature simple, made-from-scratch favorites like tacos, chips and queso, burritos, bowls, and signature sauces. Fuzzy's Taco Shop offers opportunities for both traditional, larger-footprint restaurants and smaller, taqueria-style restaurants with a more limited menu. The franchise also offers multi-unit development options.
Corporate History
Fuzzy's Taco Shop, operating as Fuzzy's Taco Opportunities, LLC, was formed as a Texas limited liability company in May 2008 and began granting franchises for its fast-casual Mexican food restaurants in the same year. While the franchisor entity itself has not operated restaurants, its affiliates have operated restaurants under the brand since 2003. In December 2022, Fuzzy's Taco Opportunities, LLC became a wholly-owned indirect subsidiary of Dine Brands Global, Inc.
Financial Overview
Investment Range
$22,000 - $1,555,500
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$40,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$371,000
Equipment Costs (High)
$1,245,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Fuzzy's Taco Shop experienced a net loss of $7.5 million in 2024, a notable decrease from a net income of $3.494 million in 2023. The company also reported a significant goodwill impairment charge of $6.9 million in the fourth quarter of 2024, attributed to unfavorable trends in same-restaurant sales and a decline in revenue compared to the previous year. Furthermore, Fuzzy's Taco Shop's working capital substantially decreased from $2.185 million in 2023 to $36,000 in 2024, indicating a challenging financial period.
Financing Details
Fuzzy's Taco Shop does not offer any direct or indirect financing to its franchisees. This means that Fuzzy's Taco Shop will not provide loans, lease guarantees, or other financial assistance for franchise fees, equipment, or other startup costs. Franchisees are responsible for securing all necessary financing independently.
Performance Metrics
Total US Locations
117
Franchised Units
116
Corporate Units
1
Avg Square Footage
3,500
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
3
Litigation Summary
Fuzzy's Taco Shop has been involved in three arbitration cases. One ongoing case, filed in July 2024 and amended in February 2025, is against franchisee ARGH – Red Oak, LLC and its guarantors, alleging material breaches of the franchise agreement due to unilateral restaurant closures. Another case, filed in April 2024 against franchisee No L, LLC and its guarantor, resulted in Fuzzy's Taco Shop obtaining an award for $425,810 in February 2025. A third case, filed in December 2023 against franchisee SE MO Taco Investment I, LLC and its guarantor for material breaches due to unilateral restaurant closures, resulted in Fuzzy's Taco Shop obtaining an award for $243,119.45 in May 2024.
Bankruptcy History
Fuzzy's Taco Shop discloses that its Chief Financial Officer, Vance Chang, previously served as CFO for YogaWorks, Inc. Mr. Chang left YogaWorks in November 2019. YogaWorks, Inc. later filed for Chapter 11 bankruptcy on October 14, 2020, due to business pressures related to COVID-19. Fuzzy's Taco Shop itself does not have any bankruptcy history.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Fuzzy's Taco Shop franchisees must provide written notice between eight and twelve months before the current term expires. They must be in good standing, meaning they are not in default of their franchise agreement or any other agreements with Fuzzy's Taco Shop, and must have consistently operated in compliance with the franchise system. Franchisees are required to renovate, remodel, and improve their restaurant to meet Fuzzy's Taco Shop's current standards at their own expense. Additionally, the franchisee and their employees must meet current training requirements, and the franchisee must either retain the right to their approved location or secure an alternative site. All guarantors must sign a general release. Finally, franchisees must pay a renewal fee of $5,000 and sign Fuzzy's Taco Shop's then-current franchise agreement, which may have different terms and conditions.
Training & Support Program
Franchisor Assistance
Fuzzy's Taco Shop provides franchisees with comprehensive assistance both before and after their restaurant opens. Before opening, Fuzzy's Taco Shop reviews and approves the franchisee's chosen site, provides sample drawings and specifications for the restaurant's design, and offers an initial training program for the designated manager and up to two employees at no additional tuition cost (though franchisees cover travel and living expenses). Franchisees also receive access to the confidential operations manual and a New Store Opening Support Plan, which includes on-site assistance from Fuzzy's Taco Shop's support team, with the level of support varying based on the number of restaurants the franchisee is opening. For ongoing support, Fuzzy's Taco Shop advises and consults with franchisees periodically, shares knowledge on system developments, and manages the national Development Fund for brand marketing. They also review and approve local marketing materials. Franchisees and their staff must also complete various food safety and alcoholic beverage service training as required, and may be mandated to attend additional or remedial training and periodic conferences.
Initial Training Hours
201
Training Location
DFW Area, Texas
Ongoing Support
After a Fuzzy's Taco Shop restaurant opens, the franchisor provides ongoing consultation and advice regarding operations. This includes sharing knowledge and expertise on new system developments, techniques, and improvements through various channels such as on-site visits by representatives, distribution of materials (print, film, electronic), meetings, seminars, and regular communications via phone and email. Fuzzy's Taco Shop also administers a national Development Fund to support brand promotion and marketing efforts. Franchisees and their Designated Managers may be required to attend periodic conferences to discuss system developments, new menu items, operational efficiency, and marketing programs.
Franchise Requirements
Ideal Candidate Profile
Fuzzy's Taco Shop seeks franchisees who demonstrate strong business skills, financial capacity, and personal character. Ideal candidates should meet Fuzzy's Taco Shop's educational, managerial, and business standards, possess a good moral character, a strong business reputation, and a solid credit rating. Franchisees must have the aptitude and ability to operate the restaurant and sufficient equity capital to fund the business. While franchisees are responsible for the overall management of their restaurant and can choose not to supervise it full-time, they must appoint an approved Designated Manager who will oversee operations on a full-time basis and meet all of Fuzzy's Taco Shop's qualifications.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Fuzzy's Taco Shop typically defines a franchisee's Protected Area as a circle around their approved restaurant location, encompassing a population of approximately 50,000 people. The boundaries of this territory may also be defined by political subdivisions such as cities or counties, specific streets, or zip codes.
Staffing Notes
Fuzzy's Taco Shop franchisees are responsible for hiring a sufficient number of qualified employees to meet demand and for their compensation and training. Fuzzy's Taco Shop may issue minimum criteria for employee appearance and hygiene standards. Each restaurant must have an an approved Designated Manager who supervises the operations full-time. If the Designated Manager is absent, another individual who has successfully completed the initial training program and meets current criteria must supervise. Key management employees and anyone with access to confidential information must sign a confidentiality and non-competition agreement.