Franchising

Taco John's set to grow with franchisee incentives

Photo provided.

December 3, 2020

Taco John's has launched a development royalty incentive program for prospective franchisees who want to develop free-standing units for the company, a news release said.

Some incentives include specific offers for area-development agreements for five or more units, as well as single-unit development deals. Taco John's said it has seen same-store sales growth each month since May 2020.

The single-unit incentive program applies only to units franchisees commit to developing in 2021 and 2022. The ADA incentive applies to all stores that open in the first four years of the 2021 incentive plan. Both programs give franchisees the opportunity to invest what would have been spent on royalties back into their restaurants.The standard Taco John's royalty fee is 5% of net sales.

For qualified ADAs signed, franchisees will have reduced royalties of 2% in year one, 3% in year two and 4% in year three for all stores opened in the first four years. Likewise, for stores opening in the first four years of the ADA, Taco John's will make up to $10,000 available for local store marketing to spend during the first 120 days after opening.

Single-unit development agreements signed in 2021 and with stores opening in 2021 will enjoy reduced royalties of 1% in year one, 2% in year two, 3% in year three and 4% in year four.

Additionally, for stores opening in 2021, Taco John's will make up to $10,000 available for local store marketing to spend during the first 120 days after opening. Single-unit development agreements signed in 2021 and with stores opening in 2022 will enjoy reduced royalties of 2% in year one, 3% in year two and 4% in year 3.

"Taco John's is in an incredible growth phase and we are looking to partner with talented and qualified franchisees across the country," Brooks Speirs, vice president of franchise development, said in the release. "With a new brand look, completely reimagined store design, and very attractive markets available for development, we're in a strong position to encourage growth with the right partners through this unmatched incentive offer."

Differentiating itself in the popular Mexican quick-service segment, Taco John's prides itself on a unique menu that features high-quality ingredients. Its commitment to quality has established the brand as the go-to restaurant in its markets. Additionally, its significant drive-thru and to-go business has helped insulate the brand from recent market shifts. Taco John's has been the leader in to-go and drive-thru business for decades.

Taco John's is based in Cheyenne, Wyoming, and has more than 380 stores open across 22 states.