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Del Taco Inc.

2014 Franchise 500
#136
At a Glance

Products & Services: Mexican/American food

Number of Locations: 547

Total Investment: $767.7K - $1.6M

Founded: 1964

Began Franchising: 1967

About Del Taco Inc.

Ed Hackbarth opened the first Del Taco restaurant in Barstow, California, in 1964. A few months later, he added a second restaurant with a drive-thru window in Corona, California. Locations eventually spread across California and many parts of the United States.

Del Taco restaurants offer items including a value menu of tacos, burritos and nachos priced under $1, a Macho menu of large burritos, nachos and drinks, and an American menu featuring hamburgers, French Fries and shakes.

Franchise Units

Year U.S. Canadian International Company Owned
2014 245 0 0 302
2013 252 0 0 299
Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S.
Direct Capital

Startup Costs, Ongoing Fees and Financing

Total Investment: $767,700 - $1,640,500
Franchise Fee: $35,000
Ongoing Royalty Fee: 5%
Term of Franchise Agreement: 20 years, renewable
Financial Requirements
Net Worth: $1,000,000
Liquid Cash Available: $500,000
Operations
40% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 50. Absentee ownership of franchise is NOT allowed. (35% of current franchisees are owner/operators).
Direct Capital
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: Available at headquarters: 4 days. At training store : 4 weeks.
Ongoing Support: Newsletter, Meetings, Grand opening, Security/safety procedures, Field operations/evaluations
Marketing Support: Ad slicks, Regional advertising,

Franchise Ranking History

Franchise 500®: #136 (2014),

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