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Del Taco vs Arby's: Which Franchise Is Best?

Del Taco 10/22/24 11:10 AM

Taco Franchise Tex-Mex Franchise

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Are you searching for the differences between franchising with Del Taco vs Arby’s?

At Del Taco, we understand you have plenty of options to choose from when it comes to finding the best franchise opportunity for you.

In this article, we’ll take an in-depth look at five key differences between Del Taco and Arby’s when it comes to franchising.

1) Available Markets

One of the most important steps in your franchising journey is identifying an available market with the brand you’re interested in.

Let’s take a look at the number of current locations in the United States for both companies:

Arby’s: +3,300 Restaurants
Del Taco: +590 Restaurants

You’ll notice Arby’s has more than 2,700 more locations in the U.S. than Del Taco – leaving plenty of whitespace for franchise growth with our taco brand.

This gives you an opportunity to build locations in some of the most exciting markets in the country. Plus, you may have a better chance at finding availability in your preferred location.

When you look at our map of available markets at Del Taco, you’ll see most of the cities and states outside of Idaho, Utah, and Nevada are open for new development.

2) Investment Requirements

Before you begin the process of becoming a franchisee with either of these brands, you must meet certain investment requirements.

These requirements typically involve a minimum for liquid cash available and net worth along with an initial franchisee fee.

Del Taco Investment Requirements:

Minimum Liquidity: $500,000
Minimum Net Worth: $1,000,000
Franchise Fee: $35,000 per Location

Arby’s Investment Requirements:

Minimum Liquidity: $500,000
Minimum Net Worth: $1,000,000
Franchise Fee: $35,000 per Location

Both of these brands have the exact some investment requirements for new franchisees.

Keep in mind, you’ll also be responsible for paying ongoing royalty fees as a franchisee with both brands.

Del Taco charges an ongoing 5% royalty of net sales with a 4% advertising fund fee.

Arby’s requires a 4% royalty fee and 4.2% minimum combined advertising fee of gross sales.

3) Business Partners

If you’re unable to meet the financial requirements mentioned above, there are many potential sources of liquidity that may be overlooked. For example:

Business Partners
Stocks & Bonds
401k Rollovers

At Del Taco, we allow our franchisees to have business partners to help them meet investment requirements.

Arby’s is looking for multi-unit operators with management experience. However, their franchising website doesn’t currently mention if you can operate with business partners.

4) Real Estate Ownership

Being able to own the real estate associated with your franchise is an important factor to consider when shopping for the best brand to partner with.

At Del Taco, our franchisees are given the option to purchase or lease the property where their restaurants are located. We even have an entire real estate and leasing team to help you find a location or assist with lease negotiations as needed.

Arby’s does not list on their website if they allow their franchisees to own the real estate their restaurant is built and operated on.

5) Fresh Ingredients

Since 1964, Del Taco has been serving freshly prepared, craveable food at an unbeatable value for our customers.

Our menu features tacos and burritos as well as burgers and fries. Plus, we span a full complement of dayparts from breakfast to dinner to late night and everything in-between.

We believe fresh tastes better, and it shows when you see ingredients like:

House-Grated Cheddar Cheese
Slow-Cooked Beans from Scratch
House-Made Pico de Gallo
Freshly Grilled, Marinated Chicken
House-Made Guacamole
Freshly Grilled, Marinated Carne Asada

Arby’s is one of the most popular sandwich restaurant franchises in the world. Their menu is built around meat with a focus on sandwiches and burgers.