With a laid-back vibe and a cult-like following, we’ve made waves in the fast casual segment since opening the first Fuzzy’s Taco Shop in 2003. Since then, we’ve opened nearly 150 restaurants across the United States through organic, word-of-mouth growth within the franchise community. Now we’re laser-focused on expansion, with plans to hit the 200-unit mark by 2020 by partnering with franchisees that love tossing back frosty drinks and chowing down on house-made queso and chips on a patio just as much as they love adding a proven concept with a track record of success to their portfolio. That chill/savvy hybrid is exactly what we’re looking for in Fuzzy’s Taco Shop franchisees. Do you fit the bill?
FUZZY’S TACO SHOP IN THE NEWS
A CONTAGIOUS VIBE THAT KEEPS GUESTS COMING BACK FOR MORE
At Fuzzy’s, we see repeat visitors and brand devotees, not just because of our addictive tacos, salads, bowls and queso, or our refreshing beers, margaritas and specialty drinks, but because of our laid-back, inclusive vibe that has the unique ability to make guests from all walks of life feel happy the moment they step foot in the door. Because of this, most Fuzzy’s regulars have a location they refer to as *their* Fuzzy’s—a place where everyone not only know their name, but also knows their drink order.
With an average unit volume (AUV) coming in at $1.48 million as reported in our 2019 Franchise Disclosure Document (FDD), we have captured the attention of multi-unit and multi-brand operators who are quickly scooping up territory claims. The 50-plus operators who have already joined us on our mission to unapologetically serve up boldly Baja-style dishes currently own nearly 150 locations, with nearly 75 in development—and climbing.
WE KNOW WHO WE ARE, AND WE ARE DOMINATING THE SEGMENT
Unlike other brands in the fast casual segment, we have discerning tastes, both in the quality of our menu and the caliber of franchisee that we approve to join the system. With an unwavering brand voice, a commitment to growing the brand with the right people and industry accolades to boot, Fuzzy’s is a clear standout in the world of fast casual. We were named No. 2 in the Mexican category on Entrepreneur Magazine’s “Top Food Franchises” in 2019; as one of Nation’s Restaurant News’ “Fastest Growing Chains” of 2018; as well as to QSR Magazine’s Top 6 “Best Franchise Deals by Franchisee Satisfaction” in 2016.
WE ARE NOT CRAZY ABOUT BELLS AND WHISTLES—JUST CRUSHING GUEST EXPECTATIONS
The Fuzzy’s corporate team assists franchisees in the real estate process by using site evaluation software to analyze proposed sites to see how much they match up to core guests’ demographics and demand. Like the personalities of our franchisees, the character of the building can vary, but the ideal location has between 3,000 and 4,000 square feet, an outdoor patio and a beer and wine license (but a full bar is preferred—obviously). Restaurants cost between $858,500 to $1,329,000 to open.
WE ARE GROWING—DON’T MISS YOUR CHANCE
With nearly 150 locations, Fuzzy’s Taco Shop has the unique balance of solid brand awareness and great capacity for growth, with territories available in key markets across the United States.
Jessica WescottChief Financial Officer
Laura PurserVP of Marketing
Kevin RychelVP of Operations
Samir WattarVP of Supply Chain
Andie SmirlFranchise Sales Manager
HOW MUCH DOES IT COST?
|$35,000 for the first restaurant $30,000 for the second restaurant $25,000 for the third or subsequent restaurant|
|$858,500 to $1,329,000|
|3.5% for the first year of operation (5% thereafter)|
HOW MUCH CAN YOU MAKE?
|*As disclosed in Item 19 in the 2019 FDD|
PRIME TERRITORIES AVAILABLE
wherever there’s anyone who likes tacos and wants to chill
Development Agreement Execution
Welcome to the Fuzzy’s Fam
FREQUENTLY ASKED QUESTIONS
What are the minimum requirements to qualify for a Fuzzy’s Taco Shop?
You must have passion for hospitality and a personality that is enthusiastic about engaging the guest. In addition, individuals must show at least $300,000 in non-borrowed personal resources (liquid assets like cash, marketable securities, stocks, etc.) along with an overall net worth (total assets minus total liabilities) of at least $1,000,000.
Do I need restaurant experience?
No, but you may need to go see a shrink to find out why you would want to be in the restaurant business. This is really hard work, but not rocket science. With that being said, we highly encourage our franchisees without restaurant experience to partner with an experienced restaurant operations manager who has a vested interest in the business.
What is the estimated cost of opening a Fuzzy’s Taco Shop?
The total cost of each restaurant varies depending on its size and location, but a typical restaurant will cost between $858,500 and $1,329,000, including the franchise fee.
What is the term of the agreement?
The initial term is 10 years, with two additional 10-year successor terms.
How much is the franchise fee?
The Initial Franchise Fee is $35,000 for the first restaurant. There is a franchise fee discount for additional restaurants if you enter into a multi-unit Development Agreement. We are also proud members of the International Franchise Association’s VetFran Program through which we offer a franchise fee discount to qualified veterans of the United States Armed Services.
Does Fuzzy’s Taco Shop provide financing?
No, we do not provide financing. Financing must be secured through third-party lending sources.
How much will I pay in royalties?
Our standard Royalty Fee is 5% of gross weekly sales, but getting our franchisees up and running is important to us, so we discount the royalty 3.5% for the first 52 weeks your Fuzzy’s Taco Shop is open.
Does Fuzzy’s have an advertising fund?
Currently, we do not have an advertising fund, but we do have a Development Fund and we do have the right to establish Advertising Cooperatives. Our current advertising emphasis consists of digital and social media, local marketing, community involvement, charitable associations, to-go menus, a website and proprietary merchandise.
Fuzzy’s Taco Shop has a development fund. What is the development fund and how much do I contribute?
The Development Fund Fee is currently 2% of gross weekly sales. The Development Fund is intended for the common benefit of all Fuzzy’s Taco Shop restaurants and may be used for items like market studies, logo creation and modification, menu design, POP, contests, advertising and website development, among others.
How much can I make with a Fuzzy’s Taco Shop?
Due to Federal Trade Commission restrictions and various state franchise sales regulations, we are unable to provide you with specific sales or profit projections. To learn more about actual experiences, we encourage you to speak with existing franchisees during our qualification process.
Who picks out my restaurant site?
You are responsible for choosing your restaurant site, but we will assist you in the process and we do have the right to make final approval. We currently use a site evaluation software to evaluate proposed sites to see how they match up to our core customers. We will use the software to evaluate the first site you propose for free, but we may charge a fee for additional evaluations.
What type of location is best for a Fuzzy’s Taco Shop?
The character of the building may vary greatly, but we look for locations that have between 3,000 and 4,000 square feet. The site may be free standing, in a downtown area, or in a strip center. The location should have an outdoor patio, so end caps work well for our restaurants. At a minimum, you must have a beer and wine license, though some restaurants may choose to have a full bar.
Once approved, how long do I have to build out my restaurant?
From the date you sign the Franchise Agreement, you have 12 months to construct and open the first restaurant.
Will you provide me with an equipment list and opening order?
Yes, we have suggested equipment and smallwares lists, and a selection of vendors who will provide you with as much or as little assistance as you need to get your restaurant equipped.
What type of restaurant training do you provide?
The Restaurant Operations portion of our initial training program includes hands-on restaurant operations training, and is held over a five- to six-week period. In addition, a designated manager is required to attend Fuzzy’s U, our interactive classroom training. Our goal during this training program is to provide our franchisees with the ability to produce a consistent product while maintaining our fun, edgy, and addictive atmosphere.
Do you provide any on-site training?
In addition to our initial training program, we also provide on-site training at the time of your restaurant’s opening. Our trainers work with your team as they prepare to open the restaurant. After the restaurant opens for business, our trainers move into a supervisory role, ready to jump in and be more hands-on if necessary.
Will I be required to use a specific computer and software in the operation of a Fuzzy’s Taco Shop?
Yes, we require all new franchisees to utilize the same point-of-sale software and we also have a required hardware package that must be installed.
Do you allow franchisees to create menu items and adjust recipes?
Not without approval. We have a required menu and our recipes must be strictly followed. With that being said, we do allow our franchisees to use our standard, approved ingredients to create variations on our menu items to be featured as Manager Specials. An approval process is in place for Manager Specials and requests to add menu items.
Do you allow franchisees to cater?
We encourage our franchisees to offer catering, but only after they have been in business for six months and are approved for catering. It is vital that you learn how to run the restaurant correctly before we approve catering.
How is food quality and consistency maintained?
We have contracted with a national food distributor to deliver all food products to all restaurants on a weekly basis. We also monitor quality and consistency through monthly Mystery Shops and quarterly Quality Assurance Inspections.