Del Taco's unique QSR+ positioning within the rapidly growing Mexican Quick-service segment presents enormous growth potential for experienced multi-unit operators looking to diversify their portfolios with a brand consistently delivering industry leading results.
Led by an experienced executive team, Del Taco's established brand legacy, proven business model, creative marketing strategies, and solid company financials offer franchisees the support systems and resources needed to establish, manage, and grow their business.
With more than 50% of the brand's restaurants being company owned, or more than 300 units and growing, Del Taco corporate has skin in the game, so franchisees can be assured that we care about the same bottom-line profits as they do, which is somewhat atypical for a franchisee driven system. Our motto is, "One Team, One Voice, Trusted Partners." This is a partnership and we are in this together with our franchisees.
EVP and Chief Financial Officer
Best Taco (2020)
Fastest Growing Franchises (2020)
Top 50 Brands (2019)
Franchise 500 (2019)
Franchise Times 200 (2019)
Nation's Restaurant News
Consumer Picks, Brands With Best Value (2019)
Reasons to Invest
- Proven performance and demand in new markets supported with creative marketing efforts
- Opportunity to grow your wealth with a brand on the rise
- Second leading brand in the fast-growing Mexican QSR category*
- 7 consecutive years of Franchisee AUV growth**
- Positioned for continual growth with a compelling QSR+ proposition that resonates with consumers
- Broad customer base appeal with innovative, fresh menu offerings
- Strong, proven operations and support for more than 596 restaurants in 15 states
- Exclusive development territories available across the country***
- Support of a dynamic investor board, experie nced leadership team, and strong company financials
- Company average unit sales of $1,553,546 and growing****
- 26.3% operating profit of $408,809****
- The combination of a strong balance sheet and solid unit economics fueling our growth
* Regarding unit count.
** Figures are for freestanding franchisee-owned restaurants. In FY 2013, 101 or 44% had average sales ≥$1,075,499; in FY 2014, 95 or 43% had average sales ≥ $1,145,937; in FY 2015 97 or 43% had average sales ≥ $1,222,865; in FY 2016, 95 or 43% had average sales ≥ $1,316,732; in FY 2017, 98 or 44% had average sales ≥ $1,350,566; in FY 2018, 100 or 44% had average sales ≥ $1,404,461 and FY 2019, 99 or 43% had average sales ≥ $1,414,604. See Item 19 of our May 2020 Franchise Disclosure Document for more information. There is no assurance that you will do as well, a new franchisee’s results may differ from the represented results.
***See 2020 FDD for details.
****Figures reflect the average sales and operating figures of all freestanding company-operated Del Taco restaurants that have been in operation for at least one year. At the end of our most recent fiscal year ended December 31, 2019, we had a total of 300 company-owned restaurants. Of those, 293 constitute freestanding restaurants and 273 of which we have operated for more than one year. In fiscal year 2019, of the 273 restaurants, 132 restaurants (48%) had sales in excess of the $1,553,546 average and 140 restaurants (51%) had operating profit before rent and real estate taxes in excess of the $408,809 average. The company-owned Del Taco restaurants operate in Arizona (3), California (216), Georgia (10), Nevada (37) and Oklahoma (7). A new franchisee’s results may differ from the represented performance. There is no assurance that you will do as well and you must accept that risk.
This information is not intended as an offer to sell a franchise. We will not offer you a franchise until we have complied with disclosure and registration in your jurisdiction. Contact Del Taco LLC, 25521 Commercentre Drive, Lake Forest, CA 92630 to request a copy of our FDD. RESIDENTS OF NEW YORK: This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the New York Department of Law. RESIDENTS OF MINNESOTA: MN Franchise Registration Number: F – 5365
We are looking for a special kind of franchisee — one who wants to be part of our iconic brand and invest in growth! The ideal candidate/group will be well-capitalized and have knowledge of the local real estate market and an understanding of development as well as multi-unit restaurant experience and have a passion for getting involved in the local community. We are looking for candidates/investment groups who are pioneers and who are willing and eager to start off by developing new stores to build their empire and wealth.
- (Financial requirement can include partners)
- Minimum liquid capital $500,000*
- Minimum net worth of over $1 million*
- *Depending on number of restaurant commitments
- Today's competitive quick-serve restaurant industry calls for ownership groups with strong restaurant operational backgrounds. In order to qualify, your group must have at least one person with recent multi-unit restaurant operations experience and the ability and desire to enrich people’s lives through exceptional customer service, guest experience, and employee satisfaction. This operating partner must live in the market and have at least a 10% ownership in the Del Taco operations.
Fees & Investment Facts
- Franchise Fee: $35,000
- Royalty Fee: 5% of net sales
- Advertising Fee: 4% of net sales
- Total estimated initial investment: $859,700 – $2,116,500
YOUR ESTIMATED INITIAL INVESTMENT
Want to learn more about the potential return on a DEL TACO investment? Contact us to learn more about available areas and qualifications, and we'll be happy to answer your questions.
Training & Operations Support
Del Taco's leadership team, 50-plus year history of business success, and proven business model offer our franchise partners the foundation and resources necessary to establish, manage, and grow their business.
- Training with seasoned staff (Initial and Ongoing)
- Management training – 6 weeks in restaurant
- Crew training – 3 weeks prior to opening
- Opening support – At least 1 week on site
- Ongoing training classes, meetings, and support
- Franchise Business Consultant (FBC) – Ongoing business support
- Operations Audits – Unannounced at least 2 times per year
- Guest Experience Measurement Program
- Electronic Learning Management System for Ongoing Training
- Field Marketing Manager – Ongoing LSM Calendar Plan
- Technology Support and Del Fran – Franchise intranet access
- Procurement & Distribution Team – Ensures brand protection and negotiated pricing
Our franchise partners enjoy the benefits of customized marketing plans designed to support successful restaurant openings and maintain awareness, as well as dedicated field marketing managers who work alongside franchisees on a regular basis to coordinate and execute local marketing initiatives.
CUSTOMIZED MARKETING PLANS FOR NEW MARKETS
Building the brand through trade area efforts is an important part of the marketing mix. To create a stronger emotional connection with the brand and help build raving fans for a lifetime, efforts include but are not limited to:
- Point-of-purchase material
- Direct mailers and printed ads
- Disruptive and viral PR
- Social media on Facebook, Twitter, Instagram, and YouTube
- Mobile to digital media on Pandora and Hulu, as well as spot TV, cable, and radio
8 steps to ownership
Complete this brief inquiry form to express your interest in learning more
Our franchise representative will contact you to discuss the Del Taco franchise opportunity, the availability of the territory you desire, and to learn more about your qualifications. If you are prequalified to take the next step we will send you our 3-part franchise application.
Application and interview
After you complete and return the 3-part franchise application, our director of development will interview you on the phone to dive deeper into your qualifications and your interest to see if you have what it takes to become a Del Taco franchise developer.
Due diligence and Franchise Disclosure Document
If you are qualified to take the next step, we will send you our Franchise Disclosure Document (FDD). This is the time to begin your due diligence by reviewing our FDD to better understand our business and franchise model. You may want to contact some of our franchisees, visit a restaurant, and sample the great Del Taco products or reach out to us to answer any questions you may have. If you want to move forward, then at this time we will ask you to submit your business and financial verification and background authorization.
After you've reviewed the Del Taco information in the FDD and you have submitted your business and financial verification and background authorization, we will personally meet with you in your market to discuss the FDD in detail. It is also an opportunity for us to get to know each other better and to discuss your business and development plans. At this point we can discuss the development agreement terms, including opening timelines and territories based on the geography you are interested in and what is available for new Del Taco restaurant development.
Now it's time to show off your business pedigree and experience. Our VP of franchise operations will review your operations experience with you or your operating partner via phone or in person. We ask you to submit a business plan detailing your ownership structure, financial, development, marketing, and operational plan on how you will successfully develop the Del Taco brand in your market.
You are almost done! At this stage we will invite you to attend a Discovery Day at our corporate office to experience our brand culture, meet the leadership team, and learn more about the comprehensive support we offer our franchise partners. This day is designed to help us mutually decide if this is the right opportunity for your group. You will hear from each department, take an operational visit of a Del Taco store, taste our great menu items, and then end the day by having dinner with our leadership team.
With mutually acceptable terms for your development agreement, your application package and your business plan will be reviewed and approved by the Franchise Review Committee. With final approval from Del Taco's Franchise Review Committee, a Multi-Unit Development Agreement will be forwarded to you for your signature. Once you have returned your Multi-Unit Development Agreement, then it's time to find a location, secure financing, and move forward on opening your new Del Taco business!