Del Taco Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$35,000
Investment required
$1,312,000 - $3,085,000
Royalty fee
5.00%

Del Taco: A Pioneer in Mexican-Inspired Fast Food

Del Taco, a notable entity in the fast-food sector known for its Mexican-inspired offerings, was established in 1964 by Ed Hackbarth and David Jameson in Yermo, California. The company began franchising in 1967, creating global opportunities for franchisees. Starting with a modest menu featuring 19¢ tacos and 24¢ cheeseburgers, Del Taco made a striking debut with $169 in sales on its first day, equivalent to selling 900 tacos.

Based in Lake Forest, California, Del Taco has maintained a robust presence in the Pacific Southwest region of the United States. The chain's extensive menu features a mix of Mexican dishes like tacos, burritos, and quesadillas, alongside American staples such as hamburgers and crinkle-cut fries. All dishes are made with fresh ingredients, including cheddar cheese, scratch-cooked beans, pico de gallo salsa, and marinated chicken grilled in-house.

What sets Del Taco apart from its competitors is its distinctive combination of Mexican and American cuisine, appealing to a wide audience with its varied menu. The use of fresh ingredients and a broad selection of options provide a competitive advantage in the quick-service restaurant industry. Additionally, Del Taco has embraced consumer trends by introducing plant-based Beyond Tacos in collaboration with Beyond Meat, thus extending its appeal to vegetarians and vegans.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount Low Amount High
Franchise Fee $35,000 $35,000
Promotional Fee $10,000 $10,000
Land Not Included Not Included
Fee for Architectural and Engineering Services $27,000 $124,000
Environmental Assessment $2,500 $34,000
On-site Improvements $186,000 $650,000
Building Improvements $490,000 $1,200,000
Furnishings, Fixtures and Equipment $400,000 $750,000
IT Equipment & Installation, Computer-related Services & Licensing $59,000 $100,000
Technical Support $1,700 $3,500
Initial Training $15,000 $25,000
Crew Training $48,000 $68,000
Additional Funds – 3 Months $28,000 $65,000
Inventory $7,000 $7,000
Licenses, Fees and Deposits $3,000 $6,000
Fee for trade area survey analysis $0 $7,500 (plus all expenses)
TOTAL (excluding land, financing and certain other costs) $1,312,200 $3,085,000

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Number of units

2024
Franchised units

306

301

421

Company-owned units

294

290

171

Total units

600

591

592

Franchise Disclosure Document

Training 

Prior to launching a Del Taco restaurant, franchisees participate in an extensive training program. This comprehensive program covers all facets of restaurant management, including operational methods, customer service practices, and marketing strategies. The aim is to equip franchisees with the knowledge and skills needed to run their businesses successfully.

Beyond the initial training, Del Taco places a high value on continuous education. They offer ongoing support and additional training sessions to keep franchisees informed about the latest operational procedures and brand standards, ensuring consistent and effective management of their franchises.

Territory Protection

Del Taco franchisees do not receive exclusive territorial rights. Instead, they are granted a specific location to operate their restaurant. While this provides a defined area for their business operations, it does not prevent the establishment of other Del Taco restaurants or outlets nearby.

The franchisees’ rights are confined to their designated location, and any operation beyond this area requires prior written approval from the franchisor. This arrangement underscores the importance of adhering strictly to the assigned location and recognizes that no broader territorial exclusivity is provided.

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