
Del Taco
Mexican/American food- 2023 Franchise 500 Rank
-
#269 Ranked #267 last year
- Initial investment
-
$863K - $2.4M
- Units as of 2022
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600 2.4% over 3 years
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.
Company Overview
About Del Taco
Business Overview
- Franchising Since
- 1967 (2023-1967 years)
- # of employees at HQ
- 176
- Where seeking
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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.
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Initial Franchise Fee
Information Circle - $35,000
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Initial Investment
Information Circle - $862,700 - $2,368,000
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Net Worth Requirement
Information Circle - $2,000,000
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Cash Requirement
Information Circle - $500,000
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Royalty Fee
Information Circle - 5%
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Ad Royalty Fee
Information Circle - 4%
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Term of Agreement
Information Circle - 20 years
- Is franchise term renewable?
- Yes
Financing Options
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- 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
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Co-op AdvertisingAd TemplatesRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Operations
Additional details about running this franchise.
- Is absentee ownership allowed?
- No
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Can this franchise be run from home/mobile unit?
Information Circle - No
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Can this franchise be run part time?
Information Circle - No
- # of employees required to run
- 50
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Are exclusive territories available?
Information Circle - Yes
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.
Additional Rankings
Curious to know where Del Taco ranked on other franchise lists? Find out below.
Ranked #269 in 2023
Entrepreneur’s 44th annual Franchise 500® ranking shines a light on the unique challenges and changes that have shaped the franchise industry over the last year—and how franchisors have adapted and evolved to meet them.
Ranked #4 in Mexican Food in 2022
Our annual list of the top restaurant and other food franchises, divided up by category, is the perfect place to start if you’re craving a food-based business opportunity.
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