How to Finance a Tacotarian Franchise: Plant-Based Taco Shops
By Chris Cornella
A Tacotarian franchise loan finances a fast-casual Mexican restaurant with a twist: every item on the menu is plant-based. Owners need money for a lease and build-out, a kitchen designed around plant-based proteins and scratch salsas, opening inventory and working capital, and they need a lender who understands a newer franchise system that launched its US franchise program from its home markets in Las Vegas and San Diego.
US Professional Funding is not affiliated with, sponsored by or endorsed by Tacotarian; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs vary and every loan is subject to approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant before signing anything.
Tacotarian Franchise Loan at a Glance
- Concept: a fast-casual restaurant serving plant-based Mexican food, with tacos and other Mexican favorites made without animal products.
- Origins: founded in Las Vegas by two couples, Kristen and Carlos Corral and Regina and Dan Simmons, as a single restaurant.
- Footprint: restaurants in the Las Vegas valley and San Diego, plus a grocery product line sold nationally.
- Franchise program: open to entrepreneurs across the US, with access to the menu, brand identity, training, marketing support and operating systems.
- Fees and investment: confirm the franchise fee, royalty, marketing fund and total investment in Items 5, 6 and 7 of the current FDD.
- SBA Franchise Directory: listed under code S8691, with a note about the Addendum to Lease and Collateral Assignment of Lease when real estate secures the loan.
What Is Tacotarian?
Tacotarian began as one Las Vegas taqueria built by two husband-and-wife teams who wanted to serve plant-based Mexican food that meat eaters would enjoy as much as vegans. The founders describe their mission as saving the world one taco at a time, and the brand has earned national recognition from restaurant industry and plant-based food outlets.
The menu recreates familiar taqueria flavors with plant-based ingredients, including birria-style fillings. The company also sells shelf-stable taco fillings through a grocery line, which extends brand awareness well beyond its restaurant markets.
After growing to several restaurants in Las Vegas and expanding into San Diego, Tacotarian opened a franchise program for US entrepreneurs. The founders have said franchising lets them extend the plant-based mission beyond their own cities while supporting other business owners.
How lenders see the brand. Tacotarian is an emerging franchise with a distinctive niche. A lender will want to understand local demand for plant-based dining in your trade area and will rely heavily on your experience and liquidity. Our article on financing an emerging franchise explains the extra questions young systems face.
Tacotarian Franchise Costs
The franchisor’s public announcements do not list a fee or investment range we could verify. Request the current FDD and use Items 5, 6 and 7 as the basis for your loan request.
Initial franchise fee. Item 5 describes the fee, when it is due and whether it is reduced for additional restaurants. Lenders can include it in a start-up loan, though it provides no collateral.
Lease and build-out. Expect a fast-casual footprint in a shopping center, urban storefront or mixed-use building. A second-generation restaurant with a hood and grease trap can trim construction; a retail shell needs full kitchen infrastructure. See our restaurant start-up financing page.
Kitchen equipment. Plan for griddles and ranges, fryers, steam wells, ample refrigeration for produce and plant-based proteins, food processors for salsas and sauces, prep tables, a hood with fire suppression and point-of-sale technology. If the concept includes a bar, add beverage equipment and licensing.
Opening costs and working capital. Budget for training, opening inventory, launch marketing, insurance, permits and an operating reserve. Specialty ingredients can carry longer lead times, so keep enough cash to stock the restaurant properly from day one.
Item 7 line items to look for:
- Initial franchise fee
- Rent and deposits before opening
- Leasehold improvements
- Kitchen equipment, hood and refrigeration
- Furniture, fixtures, signage and decor
- Technology and point-of-sale
- Opening inventory and supplies
- Training and travel
- Grand-opening marketing
- Licenses, permits and insurance
- Additional funds for the early operating period
Ongoing Fees and How They Affect Your Loan
Item 6 sets out the royalty, marketing fund, technology charges and transfer and renewal fees. Collect them before building your projections.
How lenders factor them in. A lender reviewing a Tacotarian franchise loan subtracts royalties and fund contributions along with food, labor and rent, then checks that the remaining cash flow covers the loan payment with a cushion. Plant-based ingredients can carry different food costs than a conventional taqueria, so price your menu and food cost carefully rather than borrowing assumptions from other concepts.
Franchisor Requirements for New Owners
The franchisor says it is looking for entrepreneurs with a passion for food and a background in community-based business. Ask for its minimum net worth, liquid capital and experience criteria; lenders will apply their own cash injection and reserve standards on top of them.
The process. Expect an inquiry, receipt of the FDD, conversations with the founders, approval, site selection and training in the brand’s recipes and systems before opening.
Ways to Own a Tacotarian Restaurant
A new franchised restaurant. Since the franchise program is new, most owners will open a new unit, often in a market where the brand does not yet operate.
An existing restaurant. Resales are likely to be rare in a young system. If one arises, its sales history supports financing, subject to franchisor transfer approval.
Multiple units. Owners interested in a territory with several restaurants should discuss development terms and plan to finance each restaurant as it opens.
Financing Options for a Tacotarian Franchise
SBA 7(a) loans. Because the brand is listed on the SBA Franchise Directory, an SBA 7(a) loan can combine the fee, build-out, equipment, inventory and working capital in one loan.
SBA 504 loans. Owners who buy their building can finance the real estate and long-lived equipment with an SBA 504 loan.
Conventional term loans. Seasoned restaurant operators with collateral may prefer a conventional business loan.
Equipment financing. Refrigeration, griddles, fryers and point-of-sale hardware can be financed or leased separately. See our franchise equipment financing and leasing page.
Working capital and lines of credit. A new brand in a new market may need extra time to build awareness. A line of credit can cover payroll, inventory and local marketing during the ramp-up. Explore franchise working capital options.
Seller financing on resales. A seller may carry part of the price on an existing restaurant. Seller notes are typically subordinate to the senior loan, and SBA rules can limit their terms.
SBA Loans for Tacotarian Franchisees
SBA lenders confirm that a franchise brand appears on the SBA Franchise Directory before approving an SBA-guaranteed loan to one of its franchisees. A listing means the franchise documents have been reviewed for eligibility; each borrower must still qualify.
Tacotarian is listed under code S8691. The directory note says, in substance: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Addendum to Lease and the Collateral Assignment of Lease may not be executed.
What the note means. An Addendum to Lease adds franchisor protections to a landlord’s lease, and a Collateral Assignment of Lease lets the franchisor take over the lease if the franchisee defaults. Both assume a third-party landlord. When the borrower owns the property and pledges it as collateral, there is no such lease, so neither document is signed and the lender’s lien on the real estate stays clear. Owners who rent their space sign both documents in the usual way.
The SBA 7(a) program maximum is currently $5 million; program rules can change.
Application tips. Prepare a detailed plan that shows local demand for plant-based dining. Our article on writing a franchise business plan for an SBA loan covers the essentials, and our SBA loan calculator provides planning estimates that are not an offer or approval.
How Lenders Evaluate a Tacotarian Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement.
Net worth and liquidity. Lenders want to see the injection and reserves after closing.
Restaurant experience. Kitchen management and multi-unit or hospitality experience strengthen a request, and familiarity with plant-based cooking helps.
Business plan and projections. Build projections around trade-area demographics, competing vegan and Mexican restaurants, delivery, catering, food cost, labor, rent and every Item 6 fee, with a realistic ramp-up.
The FDD and franchise agreement. Lenders review the term, renewal and transfer rules, Item 10 financing and whether Item 19 contains financial performance representations. Read Items 3 and 4 as well. Our article on using the FDD in franchise financing explains what to watch for.
Site and lease. Expect questions about lease term, renewal options, rent and landlord improvement allowances.
Real-World Scenarios
A first franchise in a new state. A restaurant manager with plant-based cooking experience opens the brand’s first unit in a college town, using an SBA 7(a) loan for the fee, build-out, equipment and working capital.
A building purchase. An investor-operator buys a small freestanding restaurant and finances it with an SBA 504 loan. Because the property secures the loan, the lease addendum and collateral assignment are not signed.
A multi-unit plan. An experienced operator signs for a territory, finances the first restaurant and returns for the second loan once the first shows a solid operating history.
Common Mistakes to Avoid
- Assuming plant-based food costs match a traditional taqueria
- Skipping a local demand analysis for plant-based dining
- Underfunding marketing for a brand new to the market
- Signing a lease before financing is approved
- Overlooking the lease document note when buying real estate
- Opening with thin working capital
For more pitfalls, read restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Tacotarian Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney.
Step 2: Confirm requirements. Ask about net worth, liquidity and experience criteria.
Step 3: Study your market. Gauge local demand for plant-based Mexican food.
Step 4: Select a site. Compare second-generation restaurants, retail shells and building purchases.
Step 5: Gather bids and build projections. Include every franchise fee, food cost, rent, labor and a ramp-up.
Step 6: Apply. Coordinate loan approval with franchisor approval, the lease and construction.
Tacotarian Franchise Loan FAQs
How much does a Tacotarian franchise cost?
Item 7 of the current FDD provides the franchisor’s estimate. Costs depend on the site, the size of the space and the scope of the build-out.
What are the franchise fee and royalty?
Items 5 and 6 of the FDD state them. Request the current version before seeking financing.
Is Tacotarian eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S8691, with a note about lease documents when real estate secures the loan.
Do I need to be vegan to own one?
The franchisor highlights passion for food and community business experience. Ask the franchise team how it evaluates candidates.
Can I finance equipment separately?
Often, yes. Equipment financing or leasing can preserve cash for build-out and opening costs.
Does the franchisor offer financing?
Item 10 of the FDD discloses any franchisor financing. Plan for outside financing unless it says otherwise.
How long is the franchise term?
Item 17 sets the term and renewal conditions. Lenders prefer a term that outlasts the loan.
What documents do I need for a Tacotarian franchise loan?
Expect tax returns, a personal financial statement, a resume, the FDD and franchise agreement, a lease or purchase contract, bids, quotes and projections.
Final Thoughts
A Tacotarian franchise loan depends on a clear read of the FDD, a site in a market that embraces plant-based dining and projections that reflect real food costs and franchise fees. With the brand on the SBA Franchise Directory, qualified buyers can consider SBA 7(a) and SBA 504 financing alongside conventional options.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment, real estate and working capital. Learn more about our franchise financing and restaurant financing solutions.
