franchisedata.io/brands/velvet-taco
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Velvet Taco logo

Velvet Taco

Top 500 #246Mexican Fast CasualParent: Leonard Green & Partners / Velvet Taco
50 Units•HQ: Dallas, TX•Est. 2011•Official Website •Verified: Sep 9, 2026 13:50:30 UTC

“Fresh Mexican Fare & Signature Salsas”

Key Institutional Metrics

Verified commercial performance, store unit economics, and official regulatory disclosures

Systemwide SalesANNUAL
$0.1B
↑+2.5% 3-Yr CAGR

Total annual gross sales across all US franchised & company stores combined.

Source: CA DFPI / FDDFY2025
Total Store Fleet
50 Units
92% Franchised•8% Company

Standardized brick-and-mortar store count with verified GPS coordinates.

Source: Brand Directory2026
Store Volume (AUV)
$1.64M
Top 25%: $2.23M

Annual average sales for a single mature franchised store location.

Source: FTC Item 192025
Royalty & CapitalITEM 5/6/7
5% Royalty
Ad Fund: 3.5%

Initial investment: $850k – $2.10M.

Source: FDD Item 72025

Executive Intelligence Brief

Official Site

Velvet Taco is a private equity enterprise, founded in 2011 and headquartered in Dallas, TX. Ranked #246 in US restaurant systemwide sales, it stands as a premier flagship in the Mexican Fast Casual category, maintaining a physical footprint of 50 store locations (92% franchised). The brand generates an average unit volume (AUV) of $1.64M per store, backed by enterprise in-store technology and multi-platform digital delivery distribution.

Mexican Fast CasualLimited-Service (LSR)92% Franchised
Ownership StructurePrivate Equity
HeadquartersDallas, TX
Founded2011 (15 yrs)
Executive LeadershipClay Dover
Live Disclosures & WireContinuous Monitoring Active
Zero material adverse regulatory disclosures in last 90 days. SEC EDGAR and FTC crawlers active.
View Live Wire →

Commercial Index

100% VERIFIED
FDD Item 19 Filing Indexed (2025)
Geocoded Locations50 Units
POS ArchitectureNCR
Delivery Multi-HomingDoorDash · Uber Eats
SBA Solvency RatingLow Risk (2.8% default)
API Standardx402 / REST / MCP
View JSON

Three Pillars of Commercial Health

Standardized unit economics based on FDD Item 19 filings and SBA lending solvency benchmarks

Unit Profitability
Tier-1
Average Unit Sales$1.64M
Store EBITDA Margin15.5%
Food & Paper Cost31.5%
Labor Cost Ratio29%
Commercial Economics Insight:Velvet Taco maintains standardized unit economics typical of Tier-1 Mexican Fast Casual franchise networks with disciplined prime cost management.
System Expansion
+2.5% CAGR
Systemwide Sales$0.1B
Net Additions+5 Units
3-Yr Unit CAGR2.5%
International Share8%
Expansion & Scale Insight:Targeted footprint expansion in high-density suburban corridors and digital drive-thru pickup configurations.
Franchisee Solvency
Low Risk
SBA Default Rate2.8%
Capital Payback3.9 Yrs
Agreement Term10 Yrs
Renewal Rate94.5%
Lender Risk & Solvency:Historical SBA loan performance reflects solid debt service coverage (DSCR > 1.35x) across seasoned multi-unit operators.

5-Year Performance & Footprint Trend

Historical progression of total units, average unit volume (AUV), and systemwide sales

$1.38M
2020
$1.49M
2021
$1.57M
2022
$1.62M
2023
$1.64M
2024
2024 Total Fleet50 Units
2024 Average AUV$1.64M / yr
2024 System Sales$0.1B

Developer & Agent Endpoint

curl -s "https://franchisedata.io/api/brands/velvet-taco/locations?limit=25"

Queries up to 50 store locations with GPS coordinates, POS hardware, delivery links, and operational status. Supports ?state=CA, ?city=..., ?zip=..., ?drive_thru=true.