Business Description

Southwest-based, privately held chain of quick-service restaurants, serving Tex-Mex favorites, including tacos, nachos, salads, burritos, etc. Almost 100 restaurants in 5 states, with active advertising co-ops, centralized purchasing, distribution,training and field service representatives. Free-standing limits (conversion and remodeled) feature drive-thru and dining room seating.

Franchisor Background

Year Established:  1978

Franchising Since:  1980

Operating Units:
Franchised Units:	61	67%
Company-Owned Units:	30	33%
Total Operating Units:	91	100.0%
Geographic Distribution: U.S.: 91 100% In 5 States Canada: 0 0% In 0 Canadian Provinces International: 0 0% In 0 Foreign Countries   Total: 91 100.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. Kansas	2
2. Oklahoma	82
3. Texas	7

Registered in Following Registration States:

Financial Requirements

Investment:
Minimum Net Worth:	$200K
Cash Investment:	$100K
Total Investment:	$99-499K
Average Total Investment:	$299K
Fees:
Initial Franchise Fee:	$15K
Average Franchise Fee:	$15K
On-Going Royalty:	4%
Average Royalty:	4%
Advertising Fee:	3%

Average Number of Employees: 5 Full-time, 16 Part-time

Space Needs (in square footage): 900-2,200

Preferred Sites: Free-standing Building

Other Sites:

Encourage Conversions? Yes

Earnings Claims Provided?: No

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	5
General Business Experience:	4
Specific Industry Experience:	2
Formal Education:	3
Psychological Profile:	5
Personal Interview(s):	5
Terms of Contract
Term of Initial Contract:	10 Year(s)
Term of Renewal Period:	10 Year(s)
Passive Ownership:	Not Allowed
Area Development Agreements?	Yes, for 1 Year(s)
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	Yes
Support and Training
International Franchise Association:	No
Canadian Franchise Association:	No
Franchisee Association/Member:	Yes, Member
Size of Corporate Staff:	23
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	Yes
Financial Assistance?	Yes, Direct
Marketing Support:
Co-Op Advertising:	No
National Advertising:	No
Regional Advertising:	No
Local Advertising:	No
Marketing Materials:	None Specified
Additional Services:	None Specified
Other Marketing Support:	None Specified
On-Going Support:
Central Data Processing:	At Additional Cost
Central Purchasing:	Included in Fees
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	Included in Fees
Inventory Control:	Not Applicable
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	Included in Fees
800 Telephone Hotline:	Not Applicable
Training:
1. Store in Tulsa or Oklahoma City, OK	3 Weeks
2. Franchise Store	2 Weeks
Expansion Plans
Projected New Units Over Next 12 months: 18 U.S.: Yes, OK, KS, AR, MO, N.TX Canada: No Overseas: No	Request Franchisor Info   Submit an online form to receive information from Taco Mayo.