How to Finance a Rusty Taco Franchise: Costs, Bars and SBA
By Anthony Cornella
A Rusty Taco franchise loan funds a neighborhood taco restaurant that runs from breakfast through happy hour and dinner, often with a patio and margaritas on the menu. According to the franchisor’s 2026 Franchise Disclosure Document (FDD), the estimated initial investment ranges from $529,400 to $1,129,950, and much of that money goes into build-out, kitchen and bar equipment, and the cash needed to open.
This article explains what goes into that investment, the franchisor’s financial requirements, how Rusty Taco’s SBA Franchise Directory listing works, and how buyers structure financing for a new restaurant, a resale or a multi-unit plan.
US Professional Funding is not affiliated with, sponsored by or endorsed by Rusty Taco; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice; review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
Rusty Taco Franchise Loan at a Glance
- Estimated initial investment: $529,400 to $1,129,950, per Item 7 of the 2026 FDD as cited on the franchisor’s website.
- Liquidity requirement: $250,000.
- Net worth requirement: $750,000.
- Franchise fee, royalty and ad fund: not shown on the franchisor’s public pages; confirm them in Items 5 and 6 of the current FDD.
- Training: a 4-week program, followed by hands-on opening support.
- Formats: flexible formats including full bar options, plus nontraditional locations such as airports, sports arenas and travel centers.
- Founded: 2010 in Dallas, Texas.
- SBA Franchise Directory: listed as Rusty Taco (code S5003), with two notes explained below.
What Is Rusty Taco?
Rusty Taco opened in 2010 on Greenville Avenue in Dallas, in a converted gas station. The concept is a neighborhood taco stand that combines authentic, Mexican street-style tacos with cold drinks and hospitality. The menu centers on breakfast tacos, street tacos, queso, chips and salsa, and margaritas, and the brand describes itself as a laid-back gathering place where guests come for lunch, games or groups.
The franchisor emphasizes a simple menu built for operational efficiency across four dayparts: breakfast, lunch, happy hour and dinner. Catering is also available. For several years the brand operated as R Taco before returning to the Rusty Taco name, so buyers may see both names in older materials.
Restaurant formats. Rusty Taco offers flexible formats, including options with a full bar, and nontraditional venues such as airports, sports arenas and travel centers. Each format changes the build-out, the equipment list, licensing and the lease, so the format you choose shapes your loan.
Why lenders view Rusty Taco the way they do. Lenders see a fast-casual concept with a defined menu, multiple dayparts and an SBA directory listing. They also look closely at how much of a projected sales mix depends on alcohol, how the patio and bar affect build-out costs, and whether the operator has the restaurant and liquor-service experience to run it. Our page on franchise start-up financing covers how new franchise restaurants are underwritten.
Rusty Taco Franchise Costs
Initial franchise fee. The franchisor’s public pages do not show the fee, so read Item 5 of the 2026 FDD for the amount, when it is due, any multi-unit or development fees and refund terms. Lenders typically finance the fee as part of the project.
Real estate and build-out. Fast-casual restaurants like this are typically leased. Build-out typically covers the kitchen, dining room, restrooms, finishes and, where planned, a bar and patio. A second-generation restaurant space can lower costs, while a full bar and a large patio push the project toward the higher end of the range. Our article on restaurant build-out financing explains draw schedules and contingencies.
Equipment. A taco kitchen needs flat-top grills, fryers for chips, warming and holding equipment, refrigeration and freezers, prep tables and ventilation. Bar formats can add margarita machines, ice machines, beverage systems and bar refrigeration.
Opening costs and working capital. The 4-week training program, opening inventory, hiring, grand opening marketing and the early months of operation all need cash before the restaurant reaches steady sales, and Item 7 includes additional funds for that period.
Total investment. The franchisor’s website cites Item 7 of the 2026 FDD for an estimated initial investment of $529,400 to $1,129,950. The full table in the FDD breaks that range into line items, and the categories to review typically include:
- Initial franchise fee
- Lease deposits and pre-opening rent
- Architecture, design and permits
- Leasehold improvements and construction
- Kitchen equipment and smallwares
- Bar equipment, where a bar is included
- Furniture, fixtures, patio and decor
- Signage and technology systems
- Liquor and other licenses
- Training expenses and opening inventory
- Grand opening marketing
- Additional funds for the initial operating period
Lenders compare your budget against each Item 7 line. A request at the bottom of the range for a bar-and-patio restaurant, or one without working capital, will draw questions.
Ongoing Fees and How They Affect Your Loan
The franchisor’s public pages do not show actual royalty and advertising figures, so the 2026 FDD’s Item 6 is the source for every recurring fee. For a franchise restaurant, the usual categories are a royalty on gross sales, a brand or advertising fund contribution, required local marketing, technology and point-of-sale fees, and fees for transfers, renewals and additional training.
How lenders factor these costs in. Percentage-of-sales fees reduce the cash available for debt service in every month, and depending on how the agreement defines gross sales, they may apply to alcohol as well as food. Underwriters build each fee into the projected profit and loss, add rent and debt service, and test whether the restaurant still covers its obligations if sales come in below plan. Remodel or refresh requirements in the agreement should also be planned for, since they can call for new borrowing midway through the term.
Franchisor Requirements for New Owners
- Liquidity: $250,000, according to the franchisor’s website.
- Net worth: $750,000.
- Experience: restaurant experience is helpful but not required; the franchisor provides training and ongoing support.
- Candidate profile: a passion for hospitality, a strong business mindset, community focus, commitment to the brand, growth orientation and engaged leadership.
The approval process. The franchisor lists these steps: submit an inquiry, take an introductory call, review the FDD, submit a franchise application with personal financial information, conduct due diligence, attend Discovery Day to meet the team and tour a restaurant, receive approval and begin site selection, then complete training and open. Support covers market planning, site selection, lease negotiation and buildout.
Lenders want the franchisor’s approval and the signed franchise agreement before closing, and usually an executed lease. For first-time restaurant owners, they will look for a strong general manager or partner with restaurant experience.
Ways to Own a Rusty Taco
A new restaurant. You sign a franchise agreement, secure a site with the franchisor’s help, build out and open. Lenders underwrite projections, your financial strength and the franchisor’s support system.
A second-generation conversion. Converting a former restaurant space can reduce build-out and shorten the timeline. Lenders will want a scope of work, an inspection of existing equipment and a contingency.
Buying an existing restaurant. When a franchised Rusty Taco changes hands, the buyer needs the franchisor’s approval of the transfer and the landlord’s consent to assign the lease, plus a transfer of any liquor license under state rules. Lenders can underwrite actual sales and expenses. Our guide to buying a franchise resale covers the process.
Nontraditional venues. Airport, arena and travel center locations operate under the host venue’s lease and hours, and lenders underwrite them on that agreement and its term.
Multi-unit development. The franchisor describes the option to start with one location or develop several, and multi-unit commitments come with their own schedule and fees in the FDD.
Financing Options for a Rusty Taco Franchise
SBA 7(a) loans. Because Rusty Taco is on the SBA Franchise Directory, the SBA 7(a) loan program can be considered for a new restaurant or a resale. A 7(a) loan can cover build-out, equipment, the franchise fee, working capital and, on a resale, goodwill.
SBA 504 loans. If you buy the building or land for your restaurant and occupy it, an SBA 504 loan can finance the real estate and long-lived equipment. Most fast-casual restaurants lease, so 504 is the less common route.
Conventional term loans. Experienced operators with strong balance sheets, especially those adding restaurants, may use a conventional business loan. Conventional lenders generally want more equity and collateral but can move with less program paperwork.
Equipment financing. Kitchen and bar equipment, from flat-tops and fryers to margarita machines, can be financed or leased separately to preserve cash. See our restaurant equipment financing and leasing options. With an SBA loan in place, lien positions must be agreed in advance.
Working capital and lines of credit. A restaurant open from breakfast through dinner carries a large payroll and weekly food, beverage and paper purchases. A working capital loan or line of credit can cover the opening ramp-up and seasonal swings in patio traffic. Learn about restaurant working capital.
Seller financing on resales. In some sales, the seller carries part of the price. A seller note is typically subordinate to the senior loan and must fit the lender’s and the SBA’s rules, which may limit its terms.
SBA Loans for Rusty Taco Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility, and SBA lenders generally need a brand to be listed before making an SBA-guaranteed loan to one of its franchisees. A listing does not approve any borrower; it means the franchise relationship does not stand in the way.
Rusty Taco is listed under code S5003. The listing carries two notes:
- Lease addendum. When the real estate where the restaurant is located will secure the SBA-guaranteed loan, the franchisor’s Lease Addendum should not be executed. In plain English, the addendum is designed for leased space; if you own the property and pledge it as collateral, that document should not be part of the deal.
- Lien position. The lender (or a certified development company in a 504 loan) must obtain the correct lien position on all collateral as required by the SBA’s standard operating procedures. That matters when an equipment lessor, a seller or a landlord also has an interest in restaurant assets.
Directory listings can change, so confirm the current status with your lender when you apply. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
SBA application tips. Bring the full 2026 FDD, the franchise agreement, a lease or letter of intent, a contractor’s estimate, a detailed budget, monthly projections and personal financial documents. If your restaurant will serve alcohol, include the licensing plan and timeline. The SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate a Rusty Taco Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require personal guarantees from significant owners.
Net worth and liquidity. Rusty Taco’s $250,000 liquidity and $750,000 net worth requirements are a floor. Lenders also want an equity injection and reserves after closing.
Industry and management experience. Restaurant experience is not required by the franchisor, but lenders weigh it heavily. A borrower without it should show who will manage the kitchen, the bar and the staff.
Business plan and projections. Projections should follow the four dayparts, break out food and alcohol sales, include every Item 6 fee and rent, and show a downside case. The franchisor’s materials indicate that the 2026 FDD includes financial performance information in Item 19; lenders may review it, but they rely on your own site-specific projections.
The FDD and franchise agreement. Underwriters read the term and renewal rights, transfer conditions, territory, remodel obligations and any franchisor financing in Item 10. Our guide to how lenders read a Franchise Disclosure Document explains the items that matter most.
Site and lease. The lease term, including renewals, should cover the loan term. Lenders look at rent, tenant improvement allowances, patio rights, parking and visibility.
Historical financials for resales. For an existing restaurant, expect to provide several years of profit and loss statements, tax returns and sales reports.
Bars, Patios and Licensing
The full bar option and the happy hour daypart are what set many Rusty Taco locations apart from a typical quick taco counter, and they carry their own financing considerations. A bar adds equipment, plumbing and build-out cost. A patio can add seating capacity but may need permits, landlord approval and weather planning. Liquor licensing varies by state and city, can take months and in some places can be expensive or difficult to transfer, so the timeline should be part of the opening plan and the loan’s disbursement schedule. Lenders will want to know what happens to projections if the license is delayed.
Multi-Unit Growth and Development Agreements
The franchisor positions Rusty Taco for owners who want to build a multi-unit portfolio. Once a first restaurant has a track record, lenders can underwrite its cash flow alongside projections for the next one, though each new location still needs build-out, equipment and opening capital. If you sign a development agreement, match the financing plan to the opening schedule, because missing it can cost development rights. Our article on multi-unit franchise financing explains how lenders view a growing group.
Real-World Scenarios
A first-time owner with an experienced partner. A business owner with the required liquidity partners with a former restaurant general manager. They use an SBA 7(a) loan for build-out, equipment, the franchise fee and working capital, with the partner running daily operations.
A restaurant operator converting a second-generation space. An experienced operator takes over a former restaurant with an existing hood and bar. The lender finances a smaller build-out and requires an inspection of the existing equipment and a liquor licensing timeline.
A buyer purchasing an existing restaurant. A buyer acquires a franchised Rusty Taco from a retiring owner. The franchisor approves the transfer, the landlord consents to the lease assignment, and the lender underwrites the restaurant’s actual results.
Common Mistakes to Avoid
- Budgeting from older figures instead of the current FDD’s Item 7 table
- Underestimating bar and patio build-out costs
- Assuming a liquor license will be ready on opening day
- Leaving royalty and advertising fees out of projections
- Signing a lease shorter than the loan term
- Opening without enough working capital for a multi-daypart payroll
For more pitfalls that apply across the industry, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Rusty Taco Franchise
Step 1: Confirm you meet the requirements. Verify that you have at least $250,000 in liquidity and a $750,000 net worth.
Step 2: Submit an inquiry and review the FDD. Go through Items 5, 6, 7, 10, 17, 19 and 20 with a franchise attorney and accountant.
Step 3: Choose your format. Decide between a traditional restaurant, a bar-and-patio format, a conversion or a nontraditional venue, and price each one.
Step 4: Talk with a financing specialist early. Compare SBA 7(a), 504, conventional and equipment options for your Rusty Taco franchise loan before you sign a lease.
Step 5: Build your budget and projections. Use the Item 7 categories, a contractor’s estimate and a daypart-by-daypart sales plan.
Step 6: Apply and coordinate approvals. Submit your loan package and align the lender’s timeline with franchisor approval, the lease, construction and licensing.
Rusty Taco Franchise Loan FAQs
How much does it cost to open a Rusty Taco franchise?
According to Item 7 of the 2026 FDD, as cited on the franchisor’s website, the estimated initial investment is $529,400 to $1,129,950.
What is the Rusty Taco franchise fee?
The fee is disclosed in Item 5 of the current FDD. The franchisor’s public pages do not show the amount.
What royalty does Rusty Taco charge?
The royalty, advertising fund and other recurring fees are set out in Item 6 of the FDD. Build all of them into your projections.
How much liquid capital and net worth do I need?
The franchisor lists $250,000 in liquidity and a $750,000 net worth.
Is Rusty Taco eligible for SBA loans?
Yes. Rusty Taco is listed on the SBA Franchise Directory under code S5003, so a Rusty Taco franchise loan can be structured through the SBA 7(a) or 504 programs if the borrower qualifies.
Can I finance equipment separately?
Yes. Kitchen and bar equipment can be financed or leased separately, with lien positions coordinated with any SBA loan.
Can I buy an existing Rusty Taco?
Yes, with franchisor approval, the landlord’s consent to assign the lease and any required liquor license transfer.
Do I need restaurant experience?
The franchisor says restaurant experience is helpful but not required. Lenders, however, weigh experience heavily, so a first-time owner should plan to hire or partner with an experienced manager.
Does Rusty Taco offer financing?
The franchisor’s public pages do not describe a financing program. Item 10 of the FDD discloses any financing it offers.
Does the FDD include financial performance information?
The franchisor’s materials reference financial performance information from the 2026 FDD. Review Item 19 for what it covers, and for a resale, rely on the restaurant’s actual financial statements.
Final Thoughts
A Rusty Taco restaurant combines a simple taco menu with the build-out and licensing needs of a bar-and-patio neighborhood spot. With an SBA directory listing, a published 2026 investment range and clear liquidity and net worth requirements, buyers have a solid starting point. A Rusty Taco franchise loan comes together best when the format, lease, licensing timeline and working capital are planned together.
US Professional Funding helps franchise owners and buyers finance new restaurants, acquisitions, equipment, working capital and refinancing for established brands. Learn more about our franchise financing and restaurant financing solutions.
