Franchisel.com — FDD Diligence Memo
Taco Bell
Generated 2026-04-06 · 2025 FDD · Government-filed source
Taco Bell
2025 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
Sys Health
7
Fin Strength
7
Econ Burden
6
Contract
6
Red Flags & Key Signals
Franchisor chose not to include a Financial Performance Representation. Item 19 is voluntary per FTC rules. This is not automatically a negative signal — it means economics cannot be scored from the disclosure.
Franchisor is not obligated to protect your market area. Encroachment from company-owned units or other franchisees is possible.
Item 2 shows multiple executives hired within 2 years of this FDD filing. Leadership instability can affect franchisee support quality during transitions.
At least one key executive has disclosed prior franchise system experience — associated with better franchisee support and system discipline.
Franchisor financial statements are audited by ey with no going concern warning.
Investment Overview
Items 5, 6, 7Total investment range: $287,350 – $855,700. Initial fee: $22,500. Royalty: 10%. Marketing fund: 0%.
Item 19 — Revenue
Item 19 — not included in filed FDD (voluntary per FTC Franchise Rule)Economics not rated — Item 19 not available.
Not DisclosedThis franchisor chose not to include a Financial Performance Representation. Item 19 is voluntary per FTC rules. This does not indicate bad economics — it means revenue projections cannot be sourced from the disclosure document.
Item 20 — System Health
Item 20 — 2025 FDDSystem flat — net 0 units in reporting period.
→ StableUnit count essentially unchanged.
Total Units
238
Net Growth
+0
Turnover
0%
Year-over-Year Trends
2025 FDDOpened
+0
Closed
-0
Net
+0
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2025 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19No Item 19
This franchisor did not include a Financial Performance Representation in their FDD. Item 19 is voluntary per FTC rules — absence does not indicate poor economics.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
Item 2 shows recent leadership changes. Ask current franchisees: has the change in leadership affected support quality, speed of decisions, or the culture of the system?
Look for: Whether the new leadership has franchise operations experience. Disruption in field support after leadership transitions is common.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Management Team — Item 2 (Business Experience)
Leadership has prior franchise system experience; long-tenured executives (5+ years); recent leadership changes detected; 8 senior roles identified.
Item 2 · 2025 FDD · confidence: medium
Territory — Item 12
NO exclusive territory — encroachment risk exists; franchisor reserves online/ecommerce sales.
Item 12 · 2025 FDD
⚑ Broker Conflict-of-Interest Alert
This FDD discloses that franchises may be sold through franchise brokers or Franchise Sales Organizations (FSOs).
Action: Ask any consultant/broker directly whether they receive a commission from this franchisor. Always verify this independently against the FDD Items 5-6.
Data sources: 2025 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2025 FDD filed with WI DFI (file #637943). Data verified from government filing.. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.