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- 2023 Franchise 500 Rank
#269 Ranked #267 last year
- Initial investment
$863K - $2.4M
- Units as of 2022
600 2.4% over 3 years
Here’s what you need to know if you’re interested in opening a Del Taco franchise.
Del Taco, founded in 19764, is an American fast-food restaurant chain that specializes in American-style Mexican cuisine. Since beginning to franchise in 1967, Del Taco has grown to over 57 locations, about half of which are operated by franchisees. They strive to offer delicious fast food options for millions across the U.S. They have dedicated themselves to creating flavorful, fast, and affordable food.
As you run your franchise, you may provide quality meals to hundreds of people. The perfect candidate for a Del Taco franchise typically knows the local real estate market, has an understanding of the development and multi-unit restaurant experience, and harbors a passion for getting involved in the local community.
Why You May Want to Start a Del Taco Franchise
If you love the idea of offering customers delicious fast food with a twist, then opening a Del Taco franchise might be for you. They are usually known for their American-style Mexican cuisine that is made up of affordable tacos and burritos, but they also offer classic American fast food options, including burgers, fries, sodas, and milkshakes. Using their tasty and proprietary recipes, you may prepare some of the best dishes to serve loyal customers.
As a Del Taco franchisee, you may join an extensive network of specialty fast-food restaurants that are committed to providing quality, flavorful, and delicious food. You generally provide a place for people to come together and enjoy a great meal in a casual environment. You may also be providing an essential service to your community.
What Might Make a Del Taco Franchise a Good Choice?
Many times since its inception, Del Taco has been ranked in Entrepreneur’s Franchise 500. This ranking is based on an evaluation of more than 150 data points that consist of areas in costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
To be part of the Del Taco team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. You should also be aware that ongoing fees including advertising, royalty, and potential renewal fees will need to be paid. It may be a good idea to check with an attorney or financial advisor to ensure that you are financially stable enough to open and operate a Del Taco franchise. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
Del Taco may offer customized marketing plans and support, training, and ongoing operations support to most of their franchisees.
How Do You Open a Del Taco Franchise?
You may begin the process of opening a Del Taco franchise by filling out an application. After completing this step, a franchise representative may reach out to you with more in-depth information on their brand, vision, and available territory. They will also want to discuss your qualifications.
If you pass your initial interview, you may be asked to fill out an official application, and the director of development may interview you to see if you are a good fit for the brand. Next, Del Taco may send you their Franchise Disclosure Document. Once you decide to move forward, you will typically undergo a financial and background check. You may be asked to attend a discovery day at the Del Taco corporate offices in Lake Forest, California to meet the team and assess the business opportunity.
Once you’ve signed a development agreement, you may begin the search for the perfect Del Taco location.
About Del Taco
- Franchising Since
- 1967 (56 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees in the following US states: Alaska, Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Michigan, Mississippi, North Carolina, Nebraska, New Mexico, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, Wyoming
- # of Units
- 600 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Del Taco franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $862,700 - $2,368,000
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 20 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
- Third Party Financing
- Del Taco has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 240 hours
- Ongoing Support
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Del Taco? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Del Taco landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Del Taco ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse franchises that are similar to Del Taco.
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