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FDD Talk: The Fuzzy’s Taco Shop Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on March 31, 2016

in FDD Talk 2017: Food Franchises, Franchise Earnings, Mexican Restaurant Franchise



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Fuzzy's Taco Shop Photo from 708 Studios

In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the Fuzzy’s Taco Shop franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Fuzzy’s Taco Shop franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Fuzzy’s Taco Shop’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 average gross revenue for the 63 franchised Fuzzy’s Taco Shop restaurants that were open and operating for the entire 52-week annual period beginning December 30, 2013 and ending December 28, 2014
  • 2014 average gross revenue for the 8 company-owned Fuzzy’s Taco Shop restaurants that were open and operating for the entire 52-week annual period beginning December 30, 2013 and ending December 28, 2014
  • 2014 average food cost, labor cost, and occupancy cost for the 8 company-owned Fuzzy’s Taco Shop restaurants that were open and operating for the entire 52-week annual period beginning December 30, 2013 and ending December 28, 2014

Section I – Background Information

It was in 2001 on Berry Street in Fort Worth, TX near the Texas Christian University campus that Fuzzy’s Taco Shop got its start. In 2003, the father-son restaurateur team of Alan and Chuck Bush saw the light and purchased it. They spent a number of years perfecting their unique menu offerings – Baja-style soft tacos and other Tex-Mex items – and started franchising the concept in 2008.

At that time there were 5 company-owned locations. The chain has grown steadily since then, and now has 78 franchised units and 7 that are company-owned for a grand total of 85 locations spread across 11 states, which is pretty rapid growth.

Here’s how Fuzzy’s Taco Shop keeps customer satisfied in the fast-casual Mexican segment:

Charging Ahead in Florida

In May 2015, the chain announced four new multi-unit development agreements that call for opening more than 20 new Fuzzy’s Taco Shops in Sarasota, Tampa, Orlando, and Fort Myers over the next six years.

A Winning Concept

Fuzzy’s Taco Shop’s Senior Vice President of Franchise Paul Rickels explains the concept that’s quickly winning customers over as straightforward and simple, “Baja-style Tex-Mex cuisine that’s freshly made from scratch and served with fun frozen drinks or ice-cold beer at an affordable price in a casual atmosphere.”

The Menu

Fuzzy’s take on the classic Baja taco has been described as nothing short of “addictive.” Some think it’s Fuzzy’s secret sauce that does it (a garlic sauce) while others are enchanted with how the tacos are laced with feta cheese. Other Tex-Mex items include enchiladas, jumbo salads, nachos, burritos, and the chain’s signature white queso and chips. Everything is handmade from scratch and the portions are known to be generous.

Great Add-Ons

Besides being open for breakfast, lunch, and dinner (with breakfast available all day), most Fuzzy’s locations also offer a great selection of margaritas, beer, wine, and cocktails. Customers will also appreciate the chain’s free Wi-Fi service and dog-friendly patios. Loyal fans can also earn free food and discounts through the Friends with Benefits mobile app, available from both iTunes and Google Play.

Award-Winning Chain

Urbanspoon put Fuzzy’s on its annual list of Top American Eateries for Cheap Eats in 2014. QSR Magazine also named it among the Best Franchise Deals in the Rising Stars category in 2014. This year saw the chain reaching a ranking of 271 on Entrepreneur Magazine’s Franchise 500 list.

The Promise

Fuzzy’s success is due at least in part to the founding team’s promise that they’ve adhered to from the start: “To focus our full attention on promptly and efficiently providing our guests with generous helpings of uniquely flavorful foods at a fair price in a fun atmosphere.” The chain describes its approach as delivering a “reverse mullet,” which means “business in the back and party in the front.”

Section II – Estimated Costs

  • Please click here for detailed estimates of Fuzzy’s Taco Shop franchise costs, based on Item 7 of the company’s 2015 FDD.

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis



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