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Rusty Taco®

Food & Beverage • Year: 2025
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What Is Rusty Taco?

Rusty Taco is a restaurant franchise offering freshly prepared food inspired by the flavors of Mexico and Texas, with a focus on tacos and Tex‑Mex–style menu items presented in an atmosphere designed as a neighborhood gathering place. The concept includes the sale of alcoholic and non‑alcoholic beverages as part of its offerings.

Rusty Taco Franchise: Pros and Cons

A major strength is that the franchise reports zero disclosed lawsuits and a $0 Item 7 training minimum, reducing litigation exposure and upfront training costs for buyers. However, five outlet terminations, unusually high for a system of this size (top 10% in Food & Beverage), signal notable operator exits and turnover risk.

Pros

Zero disclosed lawsuits is well below what's common in Food & Beverage, giving you a clean legal record that reduces litigation risk during due diligence.
Zero outlet non-renewals is unusually low for this sector, suggesting franchisees are choosing to renew and remain in the system.
The Item 7 training minimum is $0, well below industry standard, so you don't have a required upfront training expense to budget into your initial costs.

Cons

Five outlet terminations is unusually high for a system of this size (top 10% for Food & Beverage), indicating a notable number of operators have exited the system.

Lawsuits & Legal Risk

100
Excellent

The franchise reported no material legal proceedings.

Territory Protection

45/100
NORMAL

Grants a protected operating area where the franchisor will not place other physical units, while the franchisor retains rights to develop nearby units affecting market density, sell online and via alternative channels, acquire and convert locations, and use alternate marks; protection is contingent on performance quotas and allows franchisee relocation.

Training & Support

95
NORMAL

The brand provides an extensive 160-hour training curriculum designed to prepare three individuals for launch, combining classroom instruction with practical, operational sessions. The program includes on-site launch support focused on operational readiness; travel and living expenses are the franchisee’s responsibility, and on-site assistance may involve additional fees beyond the initial franchise fee.

Unit Growth Analysis

Unit Growth Chart

This franchise shows a mixed but recently accelerating trajectory: unit counts fell from 36 to 34 between 2022 and 2023 (–5.6%), held at 34 in 2024 (0.0% YoY), then recovered to 37 in 2025 (+8.8% YoY). For investors this signals a modest recovery in franchise health (net +1 unit, +2.8% from 2022–2025) but growth is from a small base and was volatile—the 8.8% rebound is encouraging but should be viewed cautiously given prior decline and the small absolute change of three units.

How Much Does It Cost to Open a Rusty Taco Franchise?

Opening a Rusty Taco franchise requires a total initial investment of $528,400 to $1,127,950, according to the 2025 Franchise Disclosure Document. This range covers the franchise fee, real estate, equipment, training, and initial working capital needed to launch and operate through the early months.

Minimum Investment

$528,400
Minimum Investment Breakdown
Franchise Fee
Real Estate
Equipment & Assets
Reserves
Training
Other

Maximum Investment

$1,127,950
Maximum Investment Breakdown

Minimum Investment Breakdown

Franchise Fee$30,000
Real Estate$282,000
Equipment & Assets$172,400
Reserves$20,000
Training$0
Other$24,000

Maximum Investment Breakdown

Franchise Fee$30,000
Real Estate$701,000
Equipment & Assets$265,000
Reserves$50,000
Training$15,000
Other$66,950

Investment Analysis

This investment analysis is coming soon. Have ideas for other analyses you'd like us to add? Get in touch.

The initial investment amounts shown are estimates only. Actual costs may vary based on location size, business model, and multi-unit ownership arrangements. We recommend reviewing the full Franchise Disclosure Document for complete details.

How Much Do Rusty Taco Franchise Owners Make?

Rusty Taco franchise locations reported average gross sales of $1,067,488 and median gross sales of $600,638 in 2025, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:
$1,067,488
Median Gross Sales:
$600,638
High Gross Sales:
$1,791,183
Low Gross Sales:
$408,807
Sample Size:
24
Percent Attaining Average:
50.0%
Franchise vs Corporate Performance: Only franchised-unit data is reported here (24 comparable franchised restaurants); no company-owned P&L data is provided, so direct franchise vs corporate comparisons cannot be made from this Item 19.
Performance Variability Analysis: Average AUV is 1,067,488 with a wide spread (low 408,807 to high 1,791,183) and a median (600,638) well below the mean, indicating a skew driven by higher-performing units.
Data Scope and Limitations: The data covers fiscal 2024 and excludes 12 restaurants (new openings and atypical locations), and no expense or audited financial statement information is provided, limiting projections of net profitability.

Frequently Asked Questions

How much does it cost to open a Rusty Taco franchise?

The total initial investment for a Rusty Taco franchise ranges from $528,400 to $1,127,950, according to the 2025 Franchise Disclosure Document. This includes the franchise fee, real estate, equipment, training, and working capital.

What is the Rusty Taco initial franchise fee?

The initial franchise fee for Rusty Taco is $30,000, as stated in the 2025 FDD. This fee is paid upon signing the Franchise Agreement.

How much do Rusty Taco franchise owners make?

Rusty Taco franchise locations reported average gross sales of $1,067,488 and median gross sales of $600,638 in 2025, based on Item 19 of the Franchise Disclosure Document. Actual earnings vary by location, market, and operator experience.

Does Rusty Taco have any franchise lawsuits or legal issues?

Rusty Taco received a legal risk score of 100 out of 100 in the 2025 FDD analysis. The franchise reported no material legal proceedings.

Does Rusty Taco offer exclusive franchise territories?

Rusty Taco received a territory protection score of 45 out of 100. Grants a protected operating area where the franchisor will not place other physical units, while the franchisor retains rights to develop nearby units affecting market density, sell online and via alternative channels, acquire and convert locations, and use alternate marks; protection is contingent on performance quotas and allows franchisee relocation.

What training does Rusty Taco provide to new franchisees?

Rusty Taco received a training and support score of 95 out of 100. The brand provides an extensive 160-hour training curriculum designed to prepare three individuals for launch, combining classroom instruction with practical, operational sessions.

How many Rusty Taco franchise locations are there?

Rusty Taco had 37 total locations as of the 2025 Franchise Disclosure Document.

What type of business is Rusty Taco?

Rusty Taco is a restaurant franchise offering freshly prepared food inspired by the flavors of Mexico and Texas, with a focus on tacos and Tex‑Mex–style menu items presented in an atmosphere designed as a neighborhood gathering place.

Report generated on March 30, 2026 at 03:15 PM

This report is for informational purposes only and should not be considered as financial advice.

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