Fuzzy's Taco Shop Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$40,000
Investment required
$506,000 - $1,524,000
Royalty fee
5.00%

Fuzzy's Taco Shop: Revolutionizing Baja-Style Mexican Cuisine

Fuzzy's Taco Shop was founded in 2003 near Texas Christian University in Fort Worth, Texas, initially focusing on a college demographic with its budget-friendly Baja-style Mexican cuisine. The vision was to create a relaxed dining environment featuring cold drinks, positive vibes, and an atmosphere that would encourage patrons to linger. This approach quickly earned a dedicated following, despite the chain's relatively recent entry into the fast-food scene.

In 2009, Fuzzy's began franchising, a strategic decision that fueled its swift expansion across the United States. Renowned for its Baja-style Mexican dishes, Fuzzy's has developed a distinctive dining experience that blends a relaxed atmosphere with a broad and varied menu, attracting a diverse clientele.

The menu at Fuzzy's Taco Shop is extensive, offering more than just tacos. It features a range of Baja-inspired options including salads, burritos, burrito bowls, nachos, and quesadillas, as well as an all-day breakfast menu, kids' menu, and desserts. Alcoholic beverages are also available for patrons aged 21 and over. The variety on the menu, along with dog-friendly patios at all locations, underscores Fuzzy's dedication to providing a welcoming and inclusive dining experience.

Fuzzy's remains committed to affordability, allowing customers to enjoy meals without breaking the bank, staying true to its roots of serving financially-conscious college students. The launch of an online ordering platform for catering in 2022 highlights Fuzzy's ongoing commitment to convenience and customer satisfaction, simplifying the process for guests to enjoy Fuzzy's fare during group events and special occasions.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Fuzzy's Taco Shop offers 2 types of franchises:

Type of FUZZY'S TACO SHOP® Restaurant Initial Investment
Traditional FUZZY'S TACO SHOP® Restaurant $642,000 to $1,523,500
Taqueria-style FUZZY'S TACO SHOP® Restaurant $505,900 to $1,058,100

We are summarizing below the main costs associated with opening a Traditional FUZZY'S TACO SHOP® Restaurant franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

A Traditional FUZZY'S TACO SHOP® Restaurant

Type of Expenditure Amount
Initial Franchise Fee $40,000
Rent Security Deposits (1-2 months), Utility Deposits, and Business Licenses $10,000 - $20,000
Architect and Design Fees $10,000 – $18,000
Leasehold Improvements $300,000 – $750,000
Furniture, Fixtures, and Signage $44,000 – $95,000
Equipment and Smallwares $112,500 – $350,000
Point of Sale, Computer, Kitchen Display System, EMV, and Digital Menu Board $36,000 – $50,000
Office Equipment and Supplies $1,000 – $2,500
Professional Fees $2,500 – $15,000
Initial Sauce Inventory $400 – $600
Other Initial Inventory $27,600 – $42,400
Insurance $15,000 – $30,000
Pre-opening Training Expenses $8,000 – $25,000
Grand Opening Advertising $15,000
Additional Funds (3 months) $20,000 – $70,000
Total $642,000 - $1,523,500

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Number of units

2024
Franchised units

134

134

131

Company-owned units

3

3

1

Total units

137

137

132

Franchise Disclosure Document

Training 

Fuzzy's Taco Shop provides a comprehensive initial training program for franchisees, which is mandatory for the Designated Manager and any other employees specified by the franchisor. This training must be successfully completed at least 30 days prior to the restaurant's opening.

Inclusions

The training program covers essential areas necessary for operating the restaurant effectively. Topics include management, food and beverage preparation, sales promotion, service concepts, and the latest techniques and developments. Additionally, the franchisor offers periodic advice and consultation on the franchise's operations, sharing valuable insights and expertise.

Expenses

The initial training program is free for the Designated Manager and up to two other employees. If franchisees wish to include additional participants, they may do so based on availability and for a tuition fee of $500 per trainer per day. Franchisees are responsible for all expenses related to training.

Territory Protection

Franchisees are not granted exclusive territories and may encounter competition from other franchisees, franchisor-owned outlets, or other distribution channels or brands controlled by the franchisor.

Upon the franchisee securing an Approved Location for their Restaurant, the franchisor will assign a geographic region around the Restaurant, referred to as the "Protected Area."

The Protected Area is usually defined as a circle centered on the Restaurant with a radius ranging from 1 to 3 miles. Alternatively, the franchisor may establish the boundaries of the Protected Area using political subdivisions, streets, zip codes, or other similar criteria.

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