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How Does Del Taco Define Their Territories?

How Does Del Taco Define Their Territories?

Are you trying to figure out how Del Taco selects territories for new unit development?

This is one of the most common questions we receive from potential franchisees.

In this article, we'll explain how Del Taco assigns market points in a territory, and the support we provide to help you identify real estate opportunities.

What Are Market Points at Del Taco?

At Del Taco, we use sophisticated real estate mapping software to identify market points that fit our criteria using an empirical data model.

We select a central intersection or address that defines the market point. We draw a one-mile circle around this market point, and you have the exclusive rights to develop a new unit in this area.

Our market points are typically found around high traffic intersections with other convenience retail outlets such as grocery stores and big-box retailers.

We also pursue opportunities near major interstates and highways. You’ll notice most of our market points are located near existing QSR brands you may be familiar with.

Plus, we look for new and upcoming high growth areas that may or may not be currently located near our QSR competitors. One reason for this is markets tend to expand out geographically and open new potential trade areas.

How Does Del Taco Find & Assign Market Points?

We use a multi-pronged approach to help you find real estate in the market you’re interested in. Our team delivers a comprehensive market analysis utilizing various tools:

  • Industry Leading GIS Software: We utilize sophisticated GIS software to help identify potential market points using dozens of data points to narrow down your search for great potential locations.
  • Boots-on-the-Ground: Additionally, we also employ a traditional "boots on the ground" approach by having our internal Real Estate Development Managers visit markets to confirm what our GIS software shows as potential locations. This process takes place once you become a franchisee.
  • Leveraging Third Parties: In some cases, we will work with local third-party brokers to provide additional insights to expand on our digital and physical site identification tools.

After our first introductory call and the collection of several initial documents, we will schedule a Market Point Review Call where we share with you the market points available in your desired area via an interactive screen share.

Towards the end of the franchisee recruitment process, we will schedule another call to finalize the market points you decide to pursue. The addresses for your market points will then be recorded and placed inside your development agreement.

After you have signed your Development Agreement, you will be assigned a regionally based Real Estate Development Manager who will help you every step of the way.

Who Owns the Real Estate Associated with Del Taco?

It’s important to note that Del Taco does not own the real estate associated with your restaurant. We give our franchisees the option to purchase or lease the property where their stores are located.

You have several options:

  • You can own your real estate.
  • You may do a ground lease with a landlord and then construct your building on the leased property.
  • You may do a build-to suit where you lease the land and building from a landlord that owns the land and building.

This is an important factor to consider when shopping for the best franchise opportunity.

Regardless of what you decide to do, Del Taco has the resources available to help you navigate through the site selection process.

Check Out These Additional Resources

We hope this article gave you a better understanding of what market points mean at Del Taco.

At Del Taco, we work with our franchisees every step of the way to get their restaurants up and running.

Here are some additional online resources you may like to check out:

If you have any questions, please contact our franchise sales and support team.

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