QSR Landscape

Quick-service franchise brands, ranked by what they cost to run.

bluTaco franchise

bluTaco: — total investment, None franchise fee. Read out of the filings.

Compiled from public filings and operator sites

— Total ongoing fee
— Total investment
34 Units, 2024
2017 Founded
2018 Franchising since
MO Holts Summit
— Typical size, sq ft
No Item 19

No initial franchise fee, no required local advertising spend and no grand opening requirement. The agreement runs until either party terminates it rather than for a fixed term, and no royalty rate is disclosed.

Fees

Initial franchise fee None
Royalty —
Brand fund —
Local advertising Not required
Total ongoing Not disclosed
Transfer fee $2,500

Opening one

Total investment —
Training 0 hours classroom, 11.5 on the job
Territory A one-mile radius or less, set by population

The system

Format Tacos and quick-service Mexican
Headquarters Holts Summit, MO
Founded 2017
Franchising since 2018
Item 20 34 as of 2024, of which 33 franchised and 1 company-owned. Filing snapshot, not tonight's locator.
Item 19 No financial performance representation.

The franchisor's own accounts

Audited entity BluTaco Franchising, LLC
Fiscal year end 31 December
Auditor's opinion Unmodified
None
Net income for each fiscal year in the statements attached to FDD issued 24 April 2023. A figure in parentheses is a loss, which is how the statements themselves print it.
FY2020 ($255,151)
FY2021 ($222,505)
FY2022 ($311,486)
Total over 3 years ($789,142)

Three consecutive losses of $255,151, $222,505 and $311,486, so no trend in either direction — a franchisor holding roughly steady at a quarter of a million dollars a year of unrecovered cost. Unmodified opinion throughout.

A host-location taco format

bluTaco is a Holts Summit, Missouri, taco concept founded in 2017 and franchising since 2018. The May 2024 comparative study of published FDDs behind this row records 34 outlets as of 2024: 33 franchised and one company-owned. The operator calls the menu a customizable Southwest format built around tacos, nachos and bowls on its official site.

The location model is a meaningful distinction. The official locator includes outlets inside country stores and other host businesses, so this row should not be read as 34 freestanding restaurants comparable in footprint to a full dining-room brand. The source has no Item 7 total and no square-foot assumption to normalize that difference.

Why it is unranked

The study reports no initial franchise fee, no required local advertising spend and no grand-opening requirement. It does not disclose a royalty or brand-fund rate in the fields required for this directory’s fee stack. That makes bluTaco unranked; it does not establish a zero recurring fee.

The agreement also differs structurally from most peers. It runs until either party terminates it rather than for a fixed initial term, which is why it is omitted from the term ranking rather than sorted as zero years. Territory is one mile or less, sized by population, and the transfer fee is $2,500. Training is listed as 11.5 on-the-job hours with no classroom hours, the shortest total in the training ranking. No Item 19 financial performance representation is disclosed.

Those facts make bluTaco useful precisely because it resists a clean rank. A host-location concept, an indefinite agreement and missing percentage inputs cannot be forced into the same cost model as a conventional restaurant by assuming blanks are zero. The current FDD is where those missing payments live.

Thirty-three of thirty-four

The 2024 study count is 34 outlets, 33 franchised and one company-owned. A single corporate store in a system of that size tells a reader something specific: almost everything the franchisor knows about running the concept from day to day now sits with its franchisees rather than inside its own operations. Plenty of systems are built that way, and it is not a defect. It does change where diligence has to go. A corporate-heavy system can be examined through the franchisor’s own record; this one has to be examined through the Item 20 list, and 33 franchised units should be enough to sample properly across opening vintages and site types.

Founded in 2017 and franchising from 2018, bluTaco moved from concept to franchise offer inside a year. The source does not record how many outlets existed before the offer opened, which makes the obvious question what the franchisor had operated, and for how long, before it began selling.

Eleven and a half hours

Item 11 in this row is 11.5 on-the-job hours and no classroom hours at all, the shortest disclosed commitment in the directory by a wide margin. Training hours are the clearest available proxy for how much operating knowledge a franchisor believes it has to hand over, and a day and a half of store-side instruction with no classroom component describes a system that either has a very small operational surface or expects a buyer to arrive already able to run it.

Either reading produces the same questions. What do the 11.5 hours cover, who delivers them, and where? Is there a manual, and what does it govern? What support follows opening, and is any of it required rather than merely offered? A counter inside an existing host business may genuinely need less transfer than a freestanding restaurant with its own labour schedule and its own lease. That has to be read out of Item 11 and Item 15 rather than inferred from a low number.

No Item 7, no shape to the project

This row carries no Item 7 total, no line items and no square-foot assumption, so there is no disclosed picture of the project itself: not the buildout, not the split between equipment and construction, not the months of working capital the franchisor assumes. Every other live row in this directory supplies at least a total range.

For a host-location concept that absence may be structural rather than evasive — a counter inside someone else’s building has no leasehold-improvement line that resembles a restaurant’s — but it cannot be patched by analogy to a brand that does disclose one. There is also no grand-opening requirement and no fixed term, so three of the anchors a buyer would normally use to size a commitment are simply absent.

What is present is narrow and worth pinning down. The transfer fee is $2,500, the lowest flat exit charge disclosed anywhere on the table, and the territory is a one-mile radius or less sized by population. A low transfer fee matters more rather than less inside an indefinite agreement: when there is no term to run out, the franchisor’s consent conditions rather than the price are what determine whether an owner can leave.

Neighbours on the aisle

bluTaco is the host-location, indefinite-term, unranked row that shows why missing fields stay blank. It is not scored against a ten-year grant or a ranked fee-stack peer. Source: May 2024 comparative study of published FDDs.

The take

bluTaco is useful because it resists a clean rank. Blanks stay blank. Royalty and brand-fund rates are not in the study fields, so there is no stack to rank. “No initial fee” still leaves ongoing cost to be found. The agreement runs until either party terminates it. Item 7 and square footage are absent; host locations inside other businesses cannot be underwritten as freestanding dining rooms. Training is 11.5 on-the-job hours with no classroom hours. Transfer fee $2,500. Territory one mile or less. No Item 19. The 2024 study count is 34 outlets, 33 franchised and one company. The official locator is company evidence of where stores sit, including host businesses; it does not supply the missing Item 7. A conventional restaurant stack is a different format, not a royalty waiting to be invented.

Founded 2017, franchising since 2018, Holts Summit, Missouri. Those dates place bluTaco in the same founding cluster as GDK and Great Greek. The agreement structure does not. Indefinite term, no ranked stack, no Item 7, no Item 19: four blanks that are the brief. The May 2024 comparative study is the source year for every figure that is present.

Figures from May 2024 comparative study of published FDDs · dataset year 2024.