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Below is an in-depth analysis and side-by-side comparison of Fuddruckers vs Taco Palace including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $495,000 - $1,565,000 | $53,200 - $133,100 |
Franchise Fee | $35,000 | $33,950 |
Royalty Fee | 5% | 0-4% |
Advertising Fee | .25% | - |
Year Founded | 1980 | 1985 |
Year Franchised | 1983 | 1996 |
Term Of Agreement | 20 years | 1 year+ |
Term Of Agreement | 20 years | 1 year+ |
Renewal Fee | $25K | - |
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/No | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/No | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | 6-week training program | - |
Support | Newsletter, Meetings, Grand opening, Internet, Field operations/evaluations | Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Regional advertising | Ad slicks |
Operations |
53% of all franchisees own more than one unit Number of employees needed to run franchised unit: 40 Absentee ownership of franchise is NOT allowed. (99% of current franchisees are owner/operators) |
0% of all franchisees own more than one unit Number of employees needed to run franchised unit: 12 Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | No |
International Expansion | Yes | Yes |
The first Fuddruckers opened in San Antonio, Texas in 1980 with a classic American nostalgia theme. Fuddruckers operates and franchises more than 200 restaurants in the United States, Puerto Rico, Canada and the Middle East. The emphasis today is the same as it was in 1980 - we use only the freshest ingredients. Our restaurants serve only the freshest beef and feature on-premise bakeries where bread and dessert items are baked fresh daily. It's truly a "build-your-own meal" experience.
Husband-and-wife team Larry and Sandi Faria bought Taco Palace from Kirk Davison in 1985. The Farias had previously owned a pair of Chevron Oil Co. franchises and brought to Taco Palace 16 years of franchise experience. In developing Taco Palace's franchise program, the Farias were driven by the goal to develop a franchisee-friendly system. Taco Palace franchisees are not required to pay a franchise fee and are strongly encouraged to rent or lease an existing building and then dress it up, rather than construct a new one, a practice that helps to lessen start-up costs. The privately held company is headquartered in Monett, Missouri, and has a co-branding relationship with Kentucky Fried Chicken.