Taco Bell Express Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$152,250 - $1,766,250
Franchise Fee
$22,500
Min Cash Required
$10,000
Total US Locations
238
Business Summary
Taco Bell Express grants non-exclusive rights for licensees to operate quick-service dining facilities. These units offer inexpensively priced, quality Mexican-style food primarily for take-out, but also for on-premises eating. Taco Bell Express Units are designed for locations that are not suitable for larger, traditional Taco Bell restaurants, such as sites within colleges and universities, airports, gas and convenience stores, or other in-line locations. Licensees operate these units by strictly following the detailed methods, standards, and procedures provided by Taco Bell.
Corporate History
Taco Bell Franchisor, LLC was formed as a Delaware limited liability company on February 23, 2016, and became the franchisor for Taco Bell and Taco Bell Express Units in the United States on May 11, 2016. Its predecessor, Taco Bell Corp. (TBC), was organized in California in 1962 and has operated Taco Bell Units since that year, and Taco Bell Express Units since 1991. TBC offered and sold franchises in the U.S. from 1964 until the 2016 financing transaction. Taco Bell Franchisor, LLC's ultimate corporate parent is YUM! Brands, Inc. The company's structure changed due to a securitization transaction in 2016, which led to the formation of new entities including Taco Bell Franchisor, LLC as the new franchisor and Taco Bell IP Holder, LLC owning the intellectual property.
Financial Overview
Investment Range
$152,250 - $1,766,250
Franchise Fee (Low)
$22,500
Franchise Fee (High)
$45,000
Minimum Cash Required
$10,000
Royalty %
10%
Equipment Costs (Low)
$160,600
Equipment Costs (High)
$400,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Taco Bell Franchisor, LLC demonstrates strong financial health. As of December 31, 2024, the company maintained $53.3 million in net worth, which exceeds the $15 million minimum required for qualifying under certain U.S. state franchise registration laws. The company is in compliance with all debt covenant requirements related to its securitization notes and has not triggered any rapid amortization events. The independent auditors issued an unqualified opinion on the financial statements, indicating fair presentation in all material respects, and did not raise substantial doubt about the company's ability to continue as a going concern.
Financing Details
Taco Bell Express (the franchisor itself) does not offer direct financing for the initial investment or ongoing operations. However, its ultimate parent company, YUM! Brands, Inc. (YUM), has an arrangement with a third-party lender, LS BDC Adviser, LLC, to provide financing to qualified licensee applicants, including low-to-moderate income individuals in underserved communities. YUM may offer credit support in the form of limited guaranties, covering up to 33% of the loan amount, with a maximum guaranty of $5,000,000. If YUM provides a guaranty, franchisees must notify YUM if their loan payments are over 30 days past due. In case of loan default, the lender can accelerate payment, and YUM has the option, but not the obligation, to buy out the loan. Franchisees are required to reimburse YUM for any payments made under the guaranty. A default under this financing arrangement could lead to the termination of the License Agreement. YUM does not receive any fees from this third-party lender, and it may offer similar lending assistance through other lenders.
Performance Metrics
Total US Locations
238
Franchised Units
224
Corporate Units
14
Franchising Since
1964
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Taco Bell Express has no litigation history to report. Item 3 of the FDD states that there are no pending administrative, criminal, or civil actions against Taco Bell Franchisor, LLC, its predecessors, parents, or affiliates, nor any franchisor-initiated actions against licensees.
Bankruptcy History
Taco Bell Express has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy is required to be disclosed for the franchisor, its affiliates, or key management personnel.
Agreement Terms
Initial Term
10 years
Renewal Conditions
Taco Bell Express franchisees do not have explicit renewal rights under the License Agreement, but Taco Bell has a successor policy. To be considered for a successor license or extension, franchisees must be operationally and financially approved according to Taco Bell's current guidelines, upgrade their unit, and pay a successor fee. Franchisees must also sign a release and may be required to sign a new License Agreement with potentially different terms and conditions than their original agreement. If an extension is granted, an amendment to the License Agreement modifying the term and an extension fee will be required. For existing KT Units, franchisees also need to meet certain minimum sales requirements and KFC's standard requirements for obtaining a license successor agreement.
Training & Support Program
Franchisor Assistance
Taco Bell Express provides comprehensive assistance to its franchisees. Before opening, Taco Bell Express reviews trade areas, helps with site approval, advises on general property acquisition procedures, and provides standard building plans. Licensees receive electronic access to 'OneSource,' a confidential website containing detailed operational manuals and online training courses. Taco Bell Express also offers an operations training course for the franchisee and one manager, and a representative is available to advise on pre-opening activities. After opening, ongoing support includes general advice and assistance in managing and operating the unit, with periodic local visits from representatives. Taco Bell Express continuously updates its System and OneSource platform, providing franchisees with necessary revisions. Additionally, Taco Bell Express develops and administers advertising and sales promotion programs designed to promote and enhance the collective success of all units.
Initial Training Hours
410
Training Location
Approved Company Owned Unit
Ongoing Support
Taco Bell Express provides ongoing support to its franchisees through various means. This includes furnishing advice and assistance in managing and operating the unit, with regular local visits by Taco Bell Express representatives. The franchisor also continuously modifies and updates the operational System and the 'OneSource' online platform, providing licensees with the latest revisions. Furthermore, Taco Bell Express develops and administers advertising and sales promotion programs specifically designed to promote and enhance the collective success of all units in the system.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
non-exclusive
Staffing Notes
Taco Bell Express outlines specific training requirements for its staff. All restaurant employees must be certified in their particular job roles by successfully completing e-learning courses and on-the-job training found within the 'OneSource' platform. This includes roles like Territory Manager, Area Coach, and General Manager. Employees are required to recertify during each marketing experience by completing updated e-learning and on-the-job training. While Taco Bell Express sets minimum staffing guidelines to ensure food safety and product quality standards are met, the franchisee is solely responsible for determining the overall number of employees working at their restaurant.