Rusty Taco Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$25,000
Investment required
$532,000 - $1,100,000
Royalty fee
5.00%

Rusty Taco: Celebrating Authenticity and Community in Every Bite

Rusty Taco, founded in 2010 by Rusty Fenton and his wife Denise in Dallas, Texas, captures the spirit of a local taco stand, offering a variety of fresh, authentic street-style tacos. The inspiration for Rusty Taco came from Rusty Fenton's memorable experience with an authentic fish taco in Acapulco, which motivated him to bring that genuine flavor back to his community.

The franchise stands out with its commitment to authenticity, fresh ingredients, and straightforward menu, reflecting the true essence of Mexican street food. Rusty Taco’s offerings celebrate traditional flavors, featuring tacos paired with beverages like margaritas and beer, in line with Rusty's belief that "Tacos are the most important meal of the day."

In 2018, the franchise returned to its original name, "Rusty Taco," after a brief period as R Taco. This change marked a return to the brand’s foundational principles and honored the legacy of Rusty Fenton, who aspired to share his love for authentic tacos with a wider audience. The name change was commemorated at the original Dallas location, highlighting the brand's strong ties to its origins and its community-centered approach.

Today, Rusty Taco continues to flourish as part of Inspire Brands, growing its reach while preserving the unique character and quality that have defined it since its inception.

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.

Franchise Expenditure Table
Expenditure Amount
Initial Franchise Fee $25,000
Rent and Security Deposit $3,000 to $10,000
Utility Deposits $6,000 to $10,000
Construction, Remodeling and Leasehold Improvements $253,000 to $610,000
Permits and Licenses $3,000 to $6,950
Architect Fee $15,000 to $25,000
Restaurant Design Consulting Services $500 to $1,500
Furniture, Fixtures, Equipment, and Signage $163,000 to $250,000
Initial & Opening Training Costs $0 to $12,000
Computer Hardware and Software $15,000 to $30,000
Initial Inventory/Supplies $7,400 to $10,000
Professional Services $5,000 to $15,000
Initial Advertising and Marketing Expenses $10,000 to $15,000
Insurance $6,000 to $30,000
Additional Funds (3 months) $20,000 to $50,000
Total $531,900 to $1,100,450

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Number of units

2023
Franchised units

30

32

33

Company-owned units

4

4

1

Total units

34

36

34

Franchise Disclosure Document

Training 

The franchisor's training program for franchisees covers a wide range of topics to ensure they are well-prepared to manage and operate a Rusty Taco Restaurant. The training includes:

Introduction/Orientation Franchisees are introduced to the Rusty Taco brand, its culture, values, and operational philosophy. This initial phase lays the groundwork for the entire training program, aligning franchisees with the company's expectations and standards.

Restaurant Operations This comprehensive section addresses the essential day-to-day management and operational skills required to run a Rusty Taco Restaurant. Franchisees receive hands-on training in kitchen operations, customer service, staff management, food safety, and adherence to health and regulatory guidelines.

Marketing/Customer Services This segment provides franchisees with the tools and knowledge to effectively market their restaurant and engage with customers. Topics include local store marketing strategies, brand promotion, customer relationship management, handling customer feedback, and using social media to boost customer engagement and restaurant visibility.

Territory Protection

The franchisor offers franchisees a "Protected Territory," typically defined as a geographic area centered around the franchisee's restaurant, usually within a specified radius. Within this Protected Territory, the franchisor agrees not to open or permit the opening of another competing Rusty Taco Restaurant during the Franchise Agreement term, as long as the franchisee remains in full compliance with the agreement.

Despite this protection, the franchisor maintains certain rights within and beyond the Protected Territory. These rights include the ability to develop and establish other business systems using the same or different trademarks, to advertise and promote the franchise system, and to operate non-traditional Rusty Taco Restaurants at any location, including within the Protected Territory.

Additionally, the franchisor reserves the right to engage in the production, distribution, licensing, and sale of food, beverages, or other products and services through various distribution channels, including the Internet and temporary or seasonal food service facilities.

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