---
title: "New Royalty Incentive Plan Launched By Taco John's"
url: https://burnaze.com/article/5b4befef-1d49-4357-b8ca-632992ba5a97
source: "Franchising.com"
original_url: https://www.franchising.com/articles/new_royalty_incentive_plan_launched_by_taco_johns.html
author: "Multi-Unit Franchisee"
category: "Mexican"
industry: "Restaurants"
segment: "Mexican"
topics: ["Finance & M&A"]
published: 2020-12-07T07:00:00.000Z
modified: 2026-11-01T02:32:18.742Z
image: https://imgs.franchising.com/art/articles/5686_plate.jpg
---

# New Royalty Incentive Plan Launched By Taco John's

**TL;DR:** Taco John's has launched a new royalty incentive plan for new franchisees in 2021, offering reduced royalties for area development agreements and single-unit development deals. The plan includes specific offers for qualified candidates who sign development deals, such as reduced royalties and local store marketing funds.

*By Multi-Unit Franchisee, originally published in Franchising.com on 2020-12-07. [Read the original](https://www.franchising.com/articles/new_royalty_incentive_plan_launched_by_taco_johns.html).*

## Story

Taco John’s has announced a new royalty incentive plan targeted to new franchisees in 2021. The new program will be available to franchisees who sign-on to develop traditional free standing units, and includes specific offers for area development agreements and single-unit development deals. The company said in a statement the program is a limited time offer that gives franchisees the opportunity to invest what would have been spent on royalties back into their restaurants.

The brand is offering qualified candidates who sign a development deal the following incentives: 5+ unit area development agreements (ADA) signed in 2021 will enjoy reduced royalties of 2% in year one, 3% in year two, and 4% in year three for all stores opened in the first four years. For stores opening in the first four years of the ADA, Taco John’s will make up to $10,000 available for local store marketing to spend during the first 120 days after opening. Single-unit development agreements signed in 2021 and with stores opening in 2021 will enjoy reduced royalties of 1% in year one, 2% in year two, 3% in year three, and 4% in year four.

For stores opening in 2021, Taco John’s will make up to $10,000 available for local store marketing to spend during the first 120 days after opening. Single-unit development agreements signed in 2021 and with stores opening in 2022 will enjoy reduced royalties of 2% in year one, 3% in year two, and 4% in year 3.

## Entities

- Franchising.com (publication)
- Restaurants (sector)
- franchise development (topic)
- Multi-Unit Franchisee (person)
- Taco John's (company)
- area development agreements (topic)
- royalty incentive plan (topic)
- single-unit development deals (topic)

---
Originally reported by Multi-Unit Franchisee, Franchising.com (https://www.franchising.com/articles/new_royalty_incentive_plan_launched_by_taco_johns.html). Summarized by Burnaze (https://burnaze.com/article/5b4befef-1d49-4357-b8ca-632992ba5a97).