Are you searching for information on the average unit volume (AUV) of Del Taco?
At Del Taco, questions about our AUV are some of the most common we receive from potential franchisees.
In this article, we will take an in-depth look at the most recent Del Taco AUV numbers.
What Does Average Unit Volume Mean?
Average unit volume is derived from the total sales of company-owned or franchised stores divided by the number of company-owned or franchised units.
When you look at Item 19 of the brand’s Franchise Disclosure Document (FDD) you will typically find a chart with previous sales numbers and text that tells you where the data comes from.
Based upon Federal Trade Commission guidelines, all franchisors are precluded from providing earnings estimates or profit potential to franchisees.
However, you can get an idea of how much money each franchise location makes by referencing the average unit volume of the brand you’re interested in.
It’s important to understand every brand calculates their AUV differently. Be sure to check the footnotes underneath the Item 19 Table being referenced in the FDD for more information.
Del Taco AUV
At Del Taco, our average unit volume is $1,618,863 as outlined in Item 19 of our most recent Franchise Disclosure Document.
This number comes from Table 19-1 and represents the average sales figures for the freestanding franchised Del Taco restaurants that had been operating for at least 12 months, as of the end of the 2019 to 2022 fiscal years.
Please note, the net sales for each restaurant will depend on a wide range of factors. However, the AUV from Item 19 gives you a general idea of what to expect.
How Much Does a Del Taco Franchise Cost?
The estimated initial investment for a Del Taco Franchise is $812,700 - $2,467,500 and includes the initial franchise fees, training costs, inventory, build-out expenses, computer hardware and software, insurance and three months working capital.
Your investment will vary for each Del Taco location depending on the market you choose. Please refer to Items 5 and 7 in our Franchise Disclosure Document (FDD) for a clear representation of the total fees and investment needed.
This is simply an estimate, and the actual cost can vary largely depending on the site-specific conditions and requirements for each location.
Does Del Taco Charge Franchise Royalties?
Like most franchises, you’ll notice Del Taco has ongoing royalty fees. Our royalties at Del Taco are:
- 5% Royalty of Net Sales
- 4% Marketing Fee of Net Sales
The term “Net Sales” represents all revenue from your restaurants, except for refunds and sales or similar taxes.
These royalties ensure you have the best possible resources to run your business and bring customers to your location.
What Are the Del Taco Franchise Requirements?
Due to the cost of opening a restaurant with Del Taco, we have three minimum financial requirements all potential franchisees must meet.
- Minimum Liquidity: $500,000
- Minimum Net Worth: $1.0MM
- Franchise Fee: $35k per Location
Please note, the number of restaurants you’ve committed to developing and the size of your territory will determine your total financial requirements.
If you’re unable to meet these requirements, there are many potential sources of liquidity that may be overlooked. For example:
- Business Partners
- Stocks & Bonds
- Home Equity
- 401k Rollovers
These are just a few of the options you may like to consider in order to meet our financial requirements.
Check Out These Additional Resources
We hope this article gave you a better understanding of the Del Taco average unit volume.
At Del Taco, we work with our franchisees every step of the way in order to get their restaurants up and running.
Here are some additional online resources you may like to check out:
- Which Taco Franchise Makes the Most Money?
- 5 Reasons to Buy a Mexican Restaurant Franchise
- Does Del Taco Offer Franchise Incentives?
If you have any questions, please contact our franchise sales and support team.