Q Is it difficult for the average person to operate the business? A While the business can be physically demanding and while experience in retail management is helpful, our training program will help you build your existing skills and learn the new ones necessary to run a Tacone® restaurant.
Q What is the availability of sites in my area?
A The availability of sites in specific areas will be discussed during your initial interview.
However, Tacone® cannot predict which locations will be available when the requirement process is complete. Flexibility in terms of timing and locations may be required.
Q How much money can I make? A Profitability will vary considerably depending on: sales, location, traffic and operating costs, financing terms, your ability to manage and control your business and other factors.
Q What are Tacone® royalty and advertising fees? A Our franchise fee is $30,000, our continuing royalty fee is 6% of gross sales, our promotional fund fee is 1.5% of gross sales that you remit to Tacone® plus an additional 1% you spend to promote your store.
Q How much does the franchisee contribute and how much does the bank advance? A For start-up projects, the franchisee needs to inject a minimum of 20% and potentially up to 33-1/3% of the total project. The exact amount of equity injection will be determined by the bank on a case by case basis. The borrower must have evidence of the down payment funds, plus adequate funds to cover living expenses.
Q How long is the term of the loan? A Terms for our partner banks' SBA notes vary but are generally the length of the term of your lease or up to 10 years.
Q What about the interest rate? A Our partner banks offer variable rate term loans based on the Wall Street Journal Prime Rate. Generally, rates fluctuate between Prime + 1.5% and Prime + 2.75%. Actual rate is based on overall credit worthiness.
Q What does the bank take in terms of collateral? A 20% or more owners must personally guarantee the note. Since our partner SBA banks are not fully collateralized in a liquidation scenario, the banks will take additional liens or assignments on personal assets.
Q What do the principals need in terms of experience, credit and training? A It is preferred that at least one of the operating principals has a minimum of one year of quick service restaurant/retail/small business experience. All principals must have clean credit (no bankruptcies, no serious delinquencies, etc.). Also, the operating principal must successfully complete the Tacone® training program.
Q Where do our partner SBA banks finance projects? A All 50 states.