Sombrero Tacoria franchise
2024 filing · March 11, 2024Shares sales figures
Sombrero Tacoria at a glance
A fast-casual taqueria serving fresh tacos, birria tacos and other Mexican dishes. At the end of 2023 there were 4 Sombrero Tacoria locations in the US, all company-owned.
The business
- Franchisor
- KARG Franchise Systems LLC
- The company that sells the franchises
- Typical size
- 1,500–2,000 sq ft
What you pay
- Cost to open
- $408K–$680K
- Fee, build-out and opening working capital
- Franchise fee
- $35,000
- Paid once, when you sign
- Royalty
- 5%
- 5% of gross sales, paid weekly, plus up to 2% to the brand development fund (currently 1%) and 1.5% on local marketing
- Brand fund
- 1%
- 1% of gross sales, paid weekly; it can rise to 2%
- Renewal fee
- See terms
- 25% of the then current initial franchise fee
- Agreement length
- 10 years
Where it is
- US locations, 2023
- 4
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 4
- Change in 3 years
- 0
- Franchised locations, 2021–2023
- States
- 2
- Most in New Jersey and New York
From KARG Franchise Systems LLC’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Sombrero Tacoria among all franchises with the same figure.
| Figure | Sombrero Tacoria | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $544,172 | Costs more than 67% of franchises |
| Franchise feePaid once, when you sign | $35,000 | Lower than 61% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 4 | Fewer than 74% of franchises |
How much a Sombrero Tacoria franchise costs
Opening one Sombrero Tacoria costs an estimated $407,910 to $680,433. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are construction and leasehold improvements ($110,000 to $215,000) and equipment ($112,500 to $167,600). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $35,000 | ||
| Construction and Leasehold Improvements | $110,000 | $215,000 | |
| Lease Deposits and Rent – Three Months | $9,321 | $24,273 | |
| Furniture and Fixtures | $16,500 | $30,000 | |
| Equipment | $112,500 | $167,600 | |
| Signage | $3,500 | $10,000 | |
| Computer, Software, and Point of Sale System | $8,570 | $18,100 | |
| Grand Opening Marketing | $5,000 | $15,000 | |
| Initial Inventory | $9,000 | $13,000 | |
| Utility Deposits | $1,580 | $1,896 | |
| Insurance Deposits – Three Months | $92 | $330 | |
| Travel for Initial Training | $2,000 | $5,200 | |
| Is Made Professional Fees | $9,200 | $13,500 | |
| Licenses and Permits | $7,350 | $10,850 | |
| Printing, Stationery, and Office Supplies | $4,550 | $7,300 | |
| Additional Funds – Three Months | $73,747 | $113,384 | |
| Total | $407,910 | $680,433 | |
Source: KARG Franchise Systems LLC, 2024 filing, page 18
Sombrero Tacoria franchise fee
The franchise fee is $35,000. You pay it when you sign the franchise agreement.
Source: KARG Franchise Systems LLC, 2024 filing, page 11
Royalty and ongoing fees
| Royalty | 5% of gross sales, paid weekly, plus up to 2% to the brand development fund (currently 1%) and 1.5% on local marketing. |
|---|---|
| Brand or marketing fund | 1% of gross sales, paid weekly; it can rise to 2%. |
| Technology Fee | Up to $750 per month |
| Renewal | 25% of the then current initial franchise fee |
| Additional Employee Initial Training | Our then current training fee, currently $500 per person per day |
| Franchisee Directed Local Marketing | 1.5% of Gross Sales |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: KARG Franchise Systems LLC, 2024 filing, page 13
Other fees as filed, from pages 13–15. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Sombrero Tacoria publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: KARG Franchise Systems LLC, 2024 filing, page 50
- Estimate Estimated yearly sales per location
- $820K–$1.5M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Sombrero Tacoria compares
Of the 55 Mexican food franchises on this site, Sombrero Tacoria is the 20th cheapest to open and the 46th largest by number of locations.
| Figure | Sombrero Tacoria | Typical Mexican food brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $408K | $457K | $222K |
| Cost to open, high end | $680K | $946K | $477K |
| Franchise fee | $35K | $35K | $40K |
| Royalty | 5% | 5% | 6% |
| Brand fund | 1% | 2% | 2% |
| US locations | 4 | 15 | 21 |
| Shares earnings figures | Yes | 38 of 55 | 2,147 of 3,352 |
Typical is the median across the 55 brands in mexican food franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 0 (0) | 3 | 0 | 0 |
| 2022 | 0 (0) | 4 | 0 | 0 |
| 2023 | 0 (0) | 4 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: KARG Franchise Systems LLC, 2024 filing, page 56
Where Sombrero Tacoria locations are
At the end of 2023, Sombrero Tacoria had locations in 2 states. The most are in New Jersey and New York.
- New Jersey3
- New York1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| New Jersey | 0 | 3 | 3 |
| New York | 0 | 1 | 1 |
Source: KARG Franchise Systems LLC, 2024 filing, page 56
Who owns Sombrero Tacoria?
Sombrero Tacoria franchises are sold by KARG Franchise Systems LLC.
From KARG Franchise Systems LLC’s 2024 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: KARG Franchise Systems LLC, 2024 filing, litigation on page 11, bankruptcy on page 11
Sombrero Tacoria filings
The figures on this page come from KARG Franchise Systems LLC’s 2024 filing, issued March 11, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | March 11, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other Mexican food franchises
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Sombrero Tacoria is also on these lists: restaurant franchises, food franchises.