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

Section I – Estimated initial investment (franchise costs) for a Fuzzy’s Taco Shop franchise, based on Item 7 of the company’s 2022 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Fuzzy’s Taco Shop franchise, based on Items 5 and 6 of the company’s 2022 FDD

Section III – Number of franchised and company-owned Fuzzy’s Taco Shop outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

Section IV – News updates on the Fuzzy’s Taco Shop franchise opportunity

Section V – Presentation and analysis of Fuzzy’s Taco Shop’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 average, median, lowest, and highest gross sales for the 118 franchised, 3 company-owned, and 121 franchised and company-owned Fuzzy’s Taco Shop traditional restaurants that had been open and operating for at least 3 calendar months as of the beginning of the 2021 fiscal year, and which operated on a continuous basis during the entire 2021 fiscal year

• 2021 average, median, lowest, and highest food cost %, labor cost %, and occupancy cost % for the 3 company-owned Fuzzy’s Taco Shop traditional restaurants that had been open and operating for at least 3 calendar months as of the beginning of the 2021 fiscal year, and which operated on a continuous basis during the entire 2021 fiscal year

Section VI – Key ratios, comparables, computations, and analyses for the Fuzzy’s Taco Shop franchise opportunity (exclusive content for Platinum subscribers)

Section I – Fuzzy’s Taco Shop Franchise Costs

• Fuzzy’s Taco Shop (traditional restaurant) franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $40,000
• Rent, Security Deposits (1-2 months), Utility Deposits, and Business Licenses:  $10,000 to $20,000
• Architect and Design Fees:  $10,000 to $18,000
• Leasehold Improvements:  $252,000 to $530,000
• Furniture, Fixtures, and Signage:  $44,000 to $95,000
• Equipment and Smallwares:  $112,500 to $267,000
• Point-of-Sale, Computer, and Security Systems:  $32,000 to $46,100
• Office Equipment and Supplies:  $1,000 to $2,500
• Professional Fees:  $2,500 to $15,000
• Initial Sauce Inventory:  $400 to $600
• Other Initial Inventory:  $27,600 to $42,400
• Insurance:  $12,000 to $25,000
• Pre-Opening Training Expenses:  $11,000 to $38,000
• Grand Opening Advertising:  $5,000 to $15,000
• Additional Funds (3 Months):  $20,000 to $70,000
• Total Estimated Fuzzy’s Taco Shop Franchise Costs:  $580,000 to $1,224,600

Section II – Fuzzy’s Taco Shop’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Fuzzy’s Taco Shop’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $30,000 to $40,000
• Royalty Fee:  5% of Gross Sales
• Development Fund:  2% of Gross Sales
• Advertising Cooperative:  amount determined by majority vote of cooperative (each Restaurant getting one vote, including company and affiliate-owned Restaurants)

Section III – Number of Franchised and Company-Owned Fuzzy’s Taco Shop Outlets

Franchised

2019

• Outlets at the Start of the Year:  137
• Outlets at the End of the Year:  136
• Net Change:  -1

2020

• Outlets at the Start of the Year:  136
• Outlets at the End of the Year:  135
• Net Change:  -1

2021

• Outlets at the Start of the Year:  135
• Outlets at the End of the Year:  134
• Net Change:  -1

Company-Owned

2019

• Outlets at the Start of the Year:  10
• Outlets at the End of the Year:  10
• Net Change:  0

2020

• Outlets at the Start of the Year:  10
• Outlets at the End of the Year:  5
• Net Change:  -5

2021

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  3
• Net Change:  -2

Section IV – News Updates on the Fuzzy’s Taco Shop Franchise

• Fuzzy’s Taco Shop Announces 50-Store Deal With Plans to Expand Throughout the Southeast

• Fuzzy’s Taco Shop Announces 4-Store Franchise Deal With Expansion Into Utah

• Fuzzy’s Opens 1st Drive-Thru Location

• Fuzzy’s Taco Shop Integrates Catering Into Its Online Ordering Platform

• Fuzzy’s Taco Shop Announces Nick Booras as Senior Vice President of Franchise Sales

• Fuzzy’s Taco Shop Owner Eyes Acquisitions Via New Platform Company

• Fuzzy’s Taco Shop Ranks No. 339 on Entrepreneur’s 2022 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Fuzzy’s Taco Shop Franchise (Item 19, 2022 FDD)

• The annual data reported below reflects information for the time period from January 4, 2021 to January 2, 2022 (Fuzzy’s Taco Shop’s “2021 Fiscal Year”) for the 121 Traditional Restaurants that had been open and operating for at least 3 calendar months as of the beginning of the 2021 Fiscal Year, and which operated on a continuous basis during the entire 2021 Fiscal Year (“Reporting Units”).

• Fuzzy’s Taco Shop includes data only for Traditional Restaurants that have been open for at least 3 months, because the performance of a Restaurant during its first 3 months is typically not representative of its long-term performance. Of the total of 121 Reporting Units, 118 were franchised Traditional Restaurants (“Franchised Reporting Units”) and 3 were affiliate-owned Traditional Restaurants (“Company Reporting Units”).

• All Reporting Units are Traditional Restaurants. The numbers below are not intended to reflect the operations of a Taqueria Restaurant, which could be materially different than the numbers reported below, due to the smaller footprint and limited menu offered by Taqueria Restaurants. Fuzzy’s Taco Shop does not currently provide any financial performance representations regarding the performance of Taqueria Restaurants.

• Other than as necessary to comply with governmental orders and safety guidelines, Fuzzy’s Taco Shop has not materially changed the operational standards for a Restaurant in response to the COVID-19 pandemic.

Part 1 – Annual Gross Sales

• The data reported below reflects Gross Sales for Reporting Units for the 2021 Fiscal Year.

121 System-Wide Reporting Units

• Average:  $1,634,290
• Number of Units Above Average:  49 (40%)
• Median:  $1,445,007
• Lowest:  $355,824
• Highest:  $4,310,816

118 Franchised Reporting Units

• Average:  $1,645,425
• Number of Units Above Average:  47 (40%)
• Median:  $1,459,238
• Lowest:  $355,824
• Highest:  $4,310,816

3 Company-Owned Reporting Units

• Average:  $1,196,345
• Number of Units Above Average:  1 (33%)
• Median:  $1,172,486
• Lowest:  $514,598
• Highest:  $1,901,950

Part 2 – Company-Owned Operational Costs

• The following reflects Fuzzy’s Taco Shop’s own internally prepared cost data for the 2021 Fiscal Year for Company Reporting Units. Fuzzy’s Taco Shop is not able to provide average operational costs for Franchised Reporting Units because it does not have reliable cost data for those Restaurants.

Food Cost % of Gross Food Sales

• Average:  27.4%
• Median:  27.2%
• Lowest:  26.9%
• Highest:  28.1%
• Units With Lower Than Average Cost:  2 (66%)

Labor Cost % of Net Sales

• Average:  33.0%
• Median:  28.7%
• Lowest:  24.8%
• Highest:  45.5%
• Units With Lower Than Average Cost:  2 (66%)

Occupancy Cost % of Net Sales

• Average:  12.0%
• Median:  12.3%
• Lowest:  7.4%
• Highest:  16.3%
• Units With Lower Than Average Cost:  1 (33%)

• The Food Cost figure noted above was calculated by adding the total food costs (excluding alcohol) expended by each of the Company Reporting Units during the applicable period and then dividing that number by the total sales (less alcohol and non-food merchandise sales) realized by each of the Company Reporting Units during the applicable period.

• The Labor Cost figure noted above was calculated by adding the total hourly and salary payroll for each of the Company Reporting Units during the applicable period and then dividing that number by the total sales (less discounts) realized by each of the Company Reporting Units during the applicable period. The payroll amounts used to calculate the Labor Cost figure noted above include only wages paid and do not include payroll taxes, benefits, workers’ compensation, or other related payroll expenses. It also does not include an owner-operator salary.

• The Occupancy Cost figure noted above was calculated by adding the total occupancy costs (including rent, utilities, CAM, and taxes) expended by each of the Company Reporting Units during the applicable period and then dividing that number by the total sales (less discounts) realized by each of the Company Reporting Units during the applicable period.

• Fuzzy’s Taco Shop does not have any reasonable basis to expect that Company Reporting Units would, as a general matter, incur Food Costs, Labor Costs, or Occupancy Costs that are materially different from Franchised Reporting Units. The financial data figures noted above are not calculations of net profit.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.

Section VI – Fuzzy’s Taco Shop Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️