Glen Bell went through a few business ventures on his way to founding Taco Bell, which has ballooned to almost 8,600 locations in over 30 countries.
He started in the mid-1940s with a hot dog stand called Bell’s Drive-In, followed by a second food stand, Bell’s Hamburgers and Hot Dogs, in the early 1950s. After the hot dog and hamburger stands he honed in on tacos, opening three taco stands named Taco Tia with a business partner in the middle of the 1950s. Then, after selling his stake in those stands, he was part of a group that opened four eateries called El Taco for a few years. Finally, after nearly 20 years in the food business, he opened the first Taco Bell in 1962 after getting some inspiration from business neighbor Mitla Café.
When it comes to how much it costs to open one of these Mexican-inspired fast food franchises, a big part of how much you’ll pay to open a Taco Bell depends on which type of unit you open.
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Kinds of Taco Bell Franchise Types
The different types of locations for which the franchisor grants franchises include traditional units and express units. Taco Bell traditional units are free-standing, permanent buildings of various sizes and configurations that offer the full Taco Bell menu. As described in the company’s Franchise Disclosure Document (FDD), the buildings include a kitchen facility where food is prepared and assembled, a counter where orders are placed and paid for and food is delivered, tables and seats for customers and, frequently, an automobile drive thru.
Taco Bell non-traditional units are granted for locations deemed inappropriate for a traditional unit by the franchisor because of size, layout constraints, or other factors. Express units can be found at colleges and universities, some dual brand facilities (like a Taco Bell/KFC combo location), airports, in-line locations, gas and convenience stores, and more. Express units, per the FDD, offer either the full Taco Bell menu or a limited menu composed of items from the full menu. At some express units, a few items from the limited menu are prepared somewhat differently than items of the same or similar name from the full menu. Non-traditional units can take three forms:
- Express units include stand-alone units constructed in sites within larger buildings and permanently constructed installations of various configurations taking advantage of available space in various types of locations.
- Power pumpers are express units that share a facility with a gas and convenience store.
- In-lines are similar to traditional units. Some can actually be defined as a traditional unit, but in-lines are designed to fit into smaller locations such as urban areas and strip malls. In-lines may or may not have a drive thru. In-line units with a drive thru can also be referred to as “end-caps.”
How Much Does a Taco Bell Franchise Cost?
The cost of a Taco Bell franchise is estimated to be between $262,950 and $4,310,200, depending on the location type you open.
The financial figures in the charts below come from the Franchise Disclosure Document of Taco Bell, dated 2025. The estimates are provided by the franchisor based of its years of experience in franchising its brand.
Estimated Initial Investment Range for Traditional Units
| Name of Fee | Low | High |
| Background Check Fee (per person) | $500 | $700 |
| Initial Franchise Fee | $25,000 | $45,000 |
| First Unit Construction Services | $27,250 | $27,250 |
| Optional Real Estate Services | $10,000 | $37,250 |
| Permits, Licenses, Security Deposits | $75,000 | $150,000 |
| Real Property | $45,000 | $1,400,000 |
| Building/Site Construction | $450,000 | $2,000,000 |
| Equipment/ Signage/ Decor/ POS | $250,000 | $575,000 |
| Initial Inventory | $7,000 | $10,000 |
| Grand Opening Expense | $5,000 | $5,000 |
| Additional Funds - 3 months | $40,000 | $60,000 |
| ESTIMATED TOTAL | $934,750 | $4,310,200 |
Estimated Initial Investment Range for Express Units (including Power Pumpers and In-Lines)
| Name of Fee | Low | High |
| Background Check Fee (per person) | $500 | $700 |
| Initial Franchise Fee | $22,500 | $22,500 |
| First Unit Construction Services | $27,250 | $27,250 |
| Optional Real Estate Services | $10,000 | $37,250 |
| Permits, Licenses, Security Deposits | $500 | $10,000 |
| Real Property (first month's rent) | $2,100 | $4,500 |
| Architectural Fees | $1,500 | $25,000 |
| Building/Site Construction | $50,000 | $300,000 |
| Equipment/ Signage/ Decor/ POS | $160,600 | $400,000 |
| Initial Inventory | $3,000 | $8,500 |
| Additional Funds (3 months) | $10,000 | $20,000 |
| ESTIMATED TOTAL | $287,350 | $855,700 |
What Are the Other Monetary Requirements to Open a Taco Bell Franchise?
In addition to the money needed to build the restaurant itself, it’s also required that prospective franchisees have a net worth of at least $5 million and liquidity of at least $2 million.
The liquid assets requirement, or liquidity, is the amount of money a franchisor suggests (sometimes requires) a franchisee have in savings and be able to access quickly in case of emergencies and unexpected situations when starting the business. It also accounts for regular living expenses until the franchise unit begins turning a profit large enough for the franchisee to garner an adequate take-home wage.
As with all franchise purchases, you should review the figures you obtain from the franchisor carefully with professional business advisors like a lawyer and an accountant before making the final decision to buy the franchise.
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