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Below is an in-depth analysis and side-by-side comparison of Taco John's vs Pepe's Mexican Restaurants including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $475,000 - $1,599,000 | $207,000 - $652,000 |
Franchise Fee | $25,000 | $10,000 - $15,000 |
Royalty Fee | 5% | 4% |
Advertising Fee | 4% | - |
Year Founded | 1968 | 1967 |
Year Franchised | 1969 | 1967 |
Term Of Agreement | 20 years+10+10+10 | 20 years |
Term Of Agreement | 20 years+10+10+10 | 20 years |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/Yes |
Start-up Costs | No/Yes | No/Yes |
Equipment | No/Yes | No/No |
Inventory | No/Yes | No/Yes |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | - | - |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Newsletter, Meetings, Grand opening, Field operations/evaluations, Purchasing cooperatives |
Marketing | Co-op advertising, Ad slicks | Co-op advertising, Ad slicks, National media, Regional advertising |
Operations |
37% of all franchisees own more than one unit Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators) |
Franchisees required to buy multiple units/master licenses; 25% of all franchisees own more than one unit Number of employees needed to run franchised unit: 10 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | No | No |
Pepe's concept began in 1954 as a taqueria in Chicago. Pepe's Incorporated has been franchising Pepe's Mexican Restaurants since 1967. Pepe's prepares and serves a full menu of Mexican food items for dining-in or carryout. It also operates a 57,000 square foot U.S. commissary where it produces food products for its franchised restaurants and its branded product program. The branded product program sells food products to schools, factories, and office cafeterias, as well as the U.S. Military for use at military bases in the United States and abroad.