Fuzzy’s Taco Shop Sells To IHOP & Applebee’s
The company that owns Applebee's and IHOP is expanding into Mexican Food. Fuzzy's Taco Shop which was founded in Fort Worth near the TCU campus is "highly franchised" meaning that 98% of its locations are independently operated.
The Dallas Morning News reported this week that Fuzzy's will now be owned by Dine Brands Global Inc. Fuzzy's sold for $80 million in cash, which will by a lot of tacos.
One of the reasons why Dine Brands Global wanted to purchase Fuzzy's? The future outlook and the loyalty of its customers according to the Dallas Morning News.
“Fuzzy’s Taco Shop is a compelling business with a loyal customer base and a distinct identity,” said Dine Brands CEO John Peyton in a statement. “It is an attractive asset with a tremendous growth trajectory and will be a complementary addition to our highly franchised portfolio.”
Investors typically spend $580,000 to $1.2 million to launch after paying a $40,000 franchise fee, according to Fuzzy’s website. Annual sales per restaurant average $1.6 million, and 98% of the restaurants are franchise-operated.
Fuzzy’s Taco Shop ranked 339th this year in Entrepreneur’s Franchise 500 and seventh among Mexican food restaurants.
Fuzzy's launched in 2001 and has grown quickly with 138 locations in 18 states, and I imagine they will be spreading even faster now.