Are you interested in learning the differences between franchising with Del Taco vs Moe’s Southwest Grill?
At Del Taco, we know you have a wide variety of decisions to make when it comes to finding the best franchise opportunity for yourself.
In this article, we’ll take an in-depth look at five key differences between Del Taco and Moe’s when it comes to franchising.
1) Available Markets
Selecting an available territory to build your locations is one of the most important steps in your franchising journey.
Let’s look at the number of current locations for both brands:
- Moe’s: +600 Locations
- Del Taco: +590 Locations
Although Moe’s has slightly more restaurants than Del Taco, both brands still have plenty of whitespace for franchise growth – especially when compared to Taco Bell with more than 7,000 locations.
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, you must meet three different investment requirements.
These requirements typically involve a minimum for liquid cash and net worth along with a franchise fee for each location you plan to operate.
Moe’s Investment Requirements:
- Minimum Liquidity: $300,000
- Minimum Net Worth: $1,000,000
- Franchise Fee: $30,500 per Location
Del Taco Investment Requirements:
- Minimum Liquidity: $500,000
- Minimum Net Worth: $1,000,000
- Franchise Fee: $35,000 per Location
Both brands have similar requirements for minimum liquidity, minimum net worth, and franchise fee.
Keep in mind, you’ll also be responsible for paying ongoing royalty fees as a franchisee.
Del Taco charges an ongoing 5% royalty of net sales and 4% ongoing marketing royalty.
Moe’s charges an ongoing 5% royalty of net sales and up to 4% advertising contribution.
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
- Home Equity
At Del Taco, we allow our franchisees to have business partners to help them meet investment requirements.
Currently, Moe’s Southwest Grill doesn’t mention if they allow franchisees the opportunity to operate with business partners on their website.
4) Real Estate Ownership
Another factor to consider when starting a franchise is whether the brand allows you to own the real estate associated with their restaurant.
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.
Moe’s currently does not state if they allow franchisees to own the real estate their location is associated with on their website.
5) Fresh Ingredients
One thing both of these Tex-Mex brands have in common is their focus on using fresh ingredients throughout the menu.
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
Moe’s uses 20 simple, fresh ingredients to create a wide variety of fast-casual menu options.
Check Out These Additional Resources
We hope this article gave you a better understanding of the advantages and disadvantages between Del Taco and Moe’s Southwest Grill.
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.