How much does a Mike's Red Tacos franchise cost?

The FDD lists a total initial investment of about $619,800–$1,953,000, including a $40,000 initial franchise fee.

What is the Mike's Red Tacos franchise failure rate?

No franchised outlets operational as of FDD date; 18 signed but unopened agreements.

Is a Mike's Red Tacos franchise worth it?

It depends on the numbers, not the pitch. Mike's Red Tacos scores D on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.

Home / Quick Service Restaurants / Mike's Red Tacos

SUBJECT DOSSIER · FDD 2025

Mike's Red Tacos

Quick Service Restaurants · disclosure-honesty grade · from public state filings

GRADE D · WEAK DISCLOSURE

Disclosure honesty

Transparency 2 / 5

Mike's Red Tacos discloses earnings (Item 19) — but the grade is how honestly. We graded it D.

Outlets2

Disclosed lawsuits0

Closure signals0 ceased

Investment

$619,800–$1,953,000

Total fees

8% of sales

Outlets

Closure signals

0 ceased, 0 terminated

Lawsuits

◢ FINDINGS

ITEM 19

Grade D disclosure

The disclosed numbers are incomplete or framed to look better than an owner's real take-home.

What their own earnings claim actually says

Two affiliate-owned locations (San Diego, CA) reporting 2025 gross sales of $3.3M-$3.8M. No franchisee performance data provided. Results not audited.

Is Mike's Red Tacos worth it? — how it compares to 164 similar franchises

Ongoing fees	8% of sales	lower than most (median 8%)
Startup cost	from $619,800	pricier than 64% of peers
Disclosure honesty	Grade D	less honest than most of the category
Closure rate	0.0% of outlets	better than most (median 1.3%)
Disclosed lawsuits	0	fewer than most

Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

Owner take-home for a Mike's Red Tacos

The franchisor's framing: Two affiliate-owned locations (San Diego, CA) reporting 2025 gross sales of $3.3M-$3.8M. N… We reconstruct what an owner actually keeps, from their own FDD.

LOW

MEDIAN

HIGH

Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
Break-even timeline + cash-on-cash ROI
Full fee stack + required-purchase markups
Decoded real failure / closure rate
How it ranks vs comparable franchises
Validation-call playbook — the exact questions to ask

See a full sample report → · 30-day guarantee

Mike's Red Tacos franchise — frequently asked

How much does a Mike's Red Tacos franchise cost?: The FDD lists a total initial investment of about $619,800–$1,953,000, including a $40,000 initial franchise fee.
How much do Mike's Red Tacos franchise owners make?: Two affiliate-owned locations (San Diego, CA) reporting 2025 gross sales of $3.3M-$3.8M. No franchisee performance data provided. Results not audited. We grade this disclosure D for honesty.
What is the Mike's Red Tacos franchise failure rate?: No franchised outlets operational as of FDD date; 18 signed but unopened agreements.
Is a Mike's Red Tacos franchise worth it?: It depends on the numbers, not the pitch. Mike's Red Tacos scores D on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.

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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Mike's Red Tacos or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.