The franchisor is Taco Bell Franchisor, LLC. The franchisor is a subsidiary of Taco Bell Corp. YUM! Brands, Inc. is the ultimate parent company. The franchisor grants non-exclusive rights to use intellectual property in operation, including, but not limited to, the Taco Bell name, logos, trade names, trademarks, trade secrets, commercial symbols, service marks, and various devices for quick customer service. Taco Bell is a quick-service restaurant offering inexpensively priced quality Mexican-style food for sit-down and take-out by the general public.
The franchisor provides four types of franchises:
- Traditional Unit: Free-standing buildings (can be of various sizes and configurations). The building must be a kitchen (for food preparation and assembly), a counter where orders are placed and paid for and food is delivered, tables and seats for customers. Often there is a drive-thru for vehicles. This type of restaurant provides a full menu.
- In-Lines: include features above, with or without a drive-thru. “End-Caps” are called In-Line units with a drive-thru.
- Power Pumpers: share a facility with a gas and convenience store. Has some of the features above.
- Taco Bell Express (Custom Facades): using available space in different locations. Generally, its stand-alone units are built on sites in larger buildings and fixed structures of varying configurations. Taco Bell Express offers limited items on the menu.
All new franchisees must complete the Starting Bell brand immersion course. This three-day long training is additional to mandatory restaurant training and. Training will take place in the Restaurant Support Center in Irvine, CA. In this course franchisees will know how to become a successful Taco Bell franchisee and develop tools to achieve that.
The franchisor requires that besides franchisee one manager attend this course. The management training program can be offered as needed. This program is a minimum of seven weeks long and can be eight weeks long, depending on the size and the geographical location of the franchisee’s restaurant.
Multibrand facilities required additional time for the other brand’s training. The training consists of classroom, on-the-job training, web-based and e-learning. At its discretion, the franchisor will provide franchisees with advice and assistance in the management and operation of the restaurant, including visits by its representatives.
Territory Granted: The franchisor may grant some rights in separate transactions or by policy on a temporary basis. The Franchise Agreement doesn’t grant any exclusivity or territorial protection. The franchisee's rights under the Franchise Agreement are not exclusive. The franchisee does not have any right to prevent use by anyone trademarks no matter how close or will be located to their restaurant.
Obligations and Restrictions: Franchisees must dedicate their best efforts, full time and attention to daily managing of the restaurant. If the franchisor approved franchisees employee as the supervisor, that individual must complete all required training and dedicate their best efforts, full time and attention to daily managing of the restaurant.
Franchisees (or supervisor) must reside within a one hour drive proximity from the restaurant unless otherwise agreed in the Franchise Agreement. During the term of the Franchise Agreement, it’s strictly prohibited to franchisees and their immediate family, employees, shareholders, and others associated with the franchise, to engage with service any other Mexican-style food anywhere but for Taco Bell's brand. Only listed in the manual food and beverages can be offered in Franchisees restaurant.
Term of Agreement and Renewal: For Traditional Unit duration of the initial franchise agreement is 25 years, for Power Pumper Unit - 20 years, In-Line or End-Cap Unit - 10 years. For End-Cap Unit opened under the Rural Incentive Program or Rural 2.0 Incentive Program the initial term of the franchisee agreement is 20 years. The Franchise Agreement does not provide the right for renewal.
Except for In-Line 10+10 Addendum granting which provide them one 10-year successor term according to certain specified conditions. Taco Bell has a valid Franchise Agreement Expiration Policy under which it can agree to enter into a new agreement with the franchisee for a period of 10 to 25 years depending on the type of restaurant and the required asset update. The Franchise Agreement Expiration Policy can be changed or canceled at any time.
Financial Assistance: YUM offers an additional lending assistance program for qualified minorities. At their discretion, YUM allows participation in the YUM Minority Lending Assistance Program and YUM for those franchisees who meet YUM’s criteria for this program.
YUM’s lending assistance will take the form of YUM guaranteeing 25% of the principal of their franchised business loan, up to a maximum of $3,000,000 per loan or franchisee. YUM can stop the YUM Minority Lending Assistance Program at any time. In other cases, the franchisor does not offer any financial help for franchisees.