Taco Bell franchise
Taco Bell is a quick-service chain serving Mexican-inspired food such as tacos, burritos and quesadillas, with late-night hours at many locations. It franchises full-menu free-standing restaurants as well as smaller Taco Bell Express units for malls, campuses and other tight spaces. At the end of 2025 there were 7,998 Taco Bell locations in the US, 7,335 franchised and 663 company-owned.
- Cost to open
- $1.86M–$4.31M
- Franchise fee
- $45,000
- Royalty
- 5.5%
- Locations, 2025
- 7,998+279 in 3 yrs
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Company snapshot
- Franchisor based in
- Irvine, California
- Territory
- No exclusive territory
- Financing
- Introductions to lenders
From Taco Bell Franchisor, LLC’s 2026 filing.
How much a Taco Bell franchise costs
Opening a new Traditional (free-standing) Taco Bell costs an estimated $1,859,750 to $4,312,200. That covers the franchise fee and everything else needed to open, through the first months of working capital.
| In-line or end-cap unit | $934,750 to $1,817,200 |
|---|
Source: Taco Bell Franchisor, LLC, 2026 filing, page 23
Taco Bell franchise fee
The franchise fee is $45,000, for a new Traditional Unit ($25,000 for an in-line or end-cap unit). You pay it when you sign the franchise agreement.
Source: Taco Bell Franchisor, LLC, 2026 filing, page 14
Royalty and ongoing fees
| Royalty | 5.5% of gross sales (the period franchise fee), paid after each accounting period. |
|---|---|
| Brand or marketing fund | 4.25% of gross sales (the period marketing fee). |
Source: Taco Bell Franchisor, LLC, 2026 filing, page 16
Sales and earnings
Shares figures Taco Bell publishes sales or earnings figures for its locations: it is limited to sales forecasts from the Bell Point, Kalibrate and Site Zeus tools for new free-standing drive-thru sites, with no historical sales for existing units. The full tables, with notes on which locations are counted, are in its filing.
Source: Taco Bell Franchisor, LLC, 2026 filing, page 61
Locations opened and closed
| Year | Franchised | Company-owned | Closed |
|---|---|---|---|
| 2023 | 7,198 (+142) | 483 | 22 |
| 2024 | 7,341 (+143) | 498 | 40 |
| 2025 | 7,335 (−6) | 663 | 174 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
Source: Taco Bell Franchisor, LLC, 2026 filing, page 65
How Taco Bell compares
Of the 46 fast food franchises on this site, Taco Bell is the 41st cheapest to open and the 4th largest by number of locations.
| Measure | Taco Bell | Typical fast food |
|---|---|---|
| Cost to open, low end | $1.86M | $701K |
| Royalty | 5.5% | 5% |
| Closed or left per year | 1.1% | 2% |
| Change in franchised locations, 3 yrs | +4% | +6.3% |
| Shares earnings figures | Yes | 39 of 46 |
Typical is the median across the 46 brands in fast food franchises.
Other fast food franchises
Taco Bell franchise questions
Does Taco Bell help with financing?
Not directly. Taco Bell points buyers to outside lenders it works with, but the loan is between you and the lender.
Do Taco Bell franchisees get a protected territory?
No. Taco Bell grants the right to run one location but no exclusive area, so another Taco Bell can open nearby.
Is Taco Bell growing or shrinking?
Over the last 3 years 515 franchised locations opened and 236 closed or left, a net change of +4%. About 1.1% of locations closed or left each year. That is below the 2% typical for fast food franchises.
How does Taco Bell compare with other fast food franchises?
Of the 46 fast food franchises here, Taco Bell is the 41st cheapest to open (low end $1.86M against a $701K median) and the 4th largest by number of locations. Its 5.5% royalty is in line with the 5% median.
Does Taco Bell say how much franchisees make?
Yes: it is limited to sales forecasts from the Bell Point, Kalibrate and Site Zeus tools for new free-standing drive-thru sites, with no historical sales for existing units. Your results can differ; the filing explains which locations are counted.
Where is Taco Bell based?
Taco Bell Franchisor, LLC is based in Irvine, California.