Start a Chronic Tacos Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $294K - $946K

Units as of 2023: 37 26% over 3 years

Filling stomachs since 2002, Chronic Tacos infuses authentic Mexican recipes with a laid-back, creative, and unique atmosphere straight out of Southern California.

Serving customers like friends, the Chronic Tacos menu may include staples of Mexican cuisine, including burritos, bowls, quesadillas, fully loaded Chronic Fries, and, of course, their signature tacos. With over 40 locations in the U.S., Canada, and Japan, Chronic Tacos is spreading the combination of great food and Southern California vibes they call “the taco life” to hungry customers worldwide.

Why You May Want To Start a Chronic Tacos Franchise

Franchisees are expected to serve innovative Mexican recipes with a Southern California twist while offering a personal customer experience. Although no prior business experience is necessary, having a background in restaurant management could prove beneficial.

Chronic Tacos franchisees should share the company’s belief that awesomely creative food and a chill atmosphere go hand-in-hand. As such, Chronic Tacos franchisees should adapt to the innovative brand as it continues to experience success. Being familiar with the distinctive So-Cal culture can only help franchisees do their part in spreading the taco life.

What Might Make a Chronic Tacos Franchise a Good Choice?

The pride of Chronic Tacos may be the authenticity of their Mexican grilled food, thanks to third-generation recipes. Honoring their Southern California roots, customers should be treated to a slice of the taco lifestyle with every experience, as mouth-watering menu items, and friendly service keeps them coming back time and time again. Franchisees, therefore, will need to ensure that both the food and the overall laid-back vibes Chronic Tacos has become known for remains just as irresistible for customers as their first visit becomes their second, third, and more.

To be part of the Chronic Tacos franchise team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company’s set net worth and liquid capital requirements.

Chronic Tacos has partnered with third-party financial lenders that may help cover the costs of the franchise fee, startup, equipment, inventory, accounts receivable, and payroll.

How To Open a Chronic Tacos Franchise

Upon approval of a Chronic Tacos franchise request, potential franchisees may speak to the company leadership before reviewing the Franchise Disclosure Document and meeting the Chronic Tacos team. Once awarded a franchise and signing the Chronic Tacos franchise agreement, you may secure your location and commence construction and training.

The Chronic Tacos franchise team will assist new franchisees with choosing a location, designing their restaurant, construction guidance, ordering equipment, marketing, and graphic design. New franchisees with Chronic Tacos will also receive a complete training program before opening. The support doesn’t end once you open the doors to your new location.

Franchisees with Chronic Tacos may receive support from a field support manager, quality and food safety, marketing, franchise support, and access to a franchise advisory council. Just don’t be surprised if you find some tacos at your meetings.

Company Overview

About Chronic Tacos

Industry	Food
Related Categories	Mexican Food
Founded	2002
Leadership	Michael Mohammed, CEO
Corporate Address	95 Enterprise, #320 Aliso Viejo, CA 92656
Social	Facebook, Twitter, LinkedIn, Instagram

Business Overview

Franchising Since	2006 (18 years)
# of employees at HQ	13
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises worldwide.
# of Units	37 (as of 2023)

Information for Franchisees

Here's what you need to know if you're interested in opening a Chronic Tacos franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$40,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$294,000 - $946,000
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$250,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$100,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	20% off franchise fee
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	6%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	2%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	Chronic Tacos has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	157 hours
Classroom Training	43 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Ad Templates Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	12
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes