---
title: "Taco John’s Introduces Royalty Incentive Program for Prospective Franchisees"
url: https://burnaze.com/article/ee6ce5b2-9d5d-4c4e-a2fd-22407282194e
source: "Franchising.com"
original_url: https://www.franchising.com/news/20201202_taco_johns_introduces_royalty_incentive_program_for_prospective_franchisees.html
category: "Mexican"
industry: "Restaurants"
segment: "Mexican"
topics: ["Development & multi-unit"]
published: 2020-12-02T12:00:00.000Z
modified: 2026-11-01T02:32:22.598Z
image: https://imgs.franchising.com/brands/social/tacojohns.jpg
---

# Taco John’s Introduces Royalty Incentive Program for Prospective Franchisees

**TL;DR:** Taco John's introduces a royalty incentive program for prospective franchisees, offering reduced royalties on new traditional store openings. The program includes incentives for single-unit and 5+-unit area development agreements.

*originally published in Franchising.com on 2020-12-02. [Read the original](https://www.franchising.com/news/20201202_taco_johns_introduces_royalty_incentive_program_for_prospective_franchisees.html).*

## Story

CHEYENNE, Wyo. - Taco John’s International Inc., the iconic quick-service Mexican franchise, announced today its 2021 development royalty incentive program for prospective franchisees.

The new franchise incentives, which are available to franchisees who sign-on to develop traditional free standing units, include specific offers for 5+-unit area development agreements (ADA) and single-unit development deals. The limited time offer is built for entrepreneurially driven individuals seeking investment opportunities in the high-growth quick-service restaurant sector, which has been powered by strong drive-thru and off-premise sales in recent months. Taco John’s in particular has seen same-store sales growth each month since May 2020.

The single-unit incentive program applies only to units franchisees commit to developing in 2021 and 2022. The 5+ unit ADA incentive applies to all stores that open in the first four years. Both programs give franchisees the opportunity to invest what would have been spent on royalties back into their restaurants. The standard Taco John’s royalty fee is 5% of net sales.

Taco John’s is offering qualified candidates who sign a development deal the following incentives:

- 5+ unit 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.

Taco John's is the 3rd largest Mexican QSR with a proven business model that has thrived for 56 years and is poised for growth. Don’t just add Mexican to your portfolio…add West-Mex!

## Entities

- Franchising.com (publication)
- Restaurants (sector)
- franchise development (topic)
- Multi-Unit (company)
- Taco John's (company)
- quick service restaurant (topic)
- royalty incentive program (topic)

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Originally reported by Franchising.com (https://www.franchising.com/news/20201202_taco_johns_introduces_royalty_incentive_program_for_prospective_franchisees.html). Summarized by Burnaze (https://burnaze.com/article/ee6ce5b2-9d5d-4c4e-a2fd-22407282194e).