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

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

At Del Taco, we know you have many options to choose from when it comes to finding the best franchise opportunity for yourself.

In this article, we will take a look at five key differences between Del Taco and Taco John’s when it comes to franchising.

1) Available Markets

Finding an available market to build your taco franchise is one of the most important steps in your journey.

Let’s take a look at the number of current locations for both brands:

• Del Taco: +590 Locations
• Taco John’s: +380 Locations

Del Taco has a couple hundred more locations than Taco John’s. However, both brands have plenty of room to grow – 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.

Taco John’s has prime territories available across the USA with a targeted focus on certain states.

2) Investment Requirements

Before you begin the process of becoming a franchisee, you will likely have to meet three different investment requirements.

There requirements will involve minimums for liquid cash and net worth along with a franchise fee for each location you plan to operate.

Del Taco Investment Requirements:

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

Taco John’s Investment Requirements:

• Minimum Liquidity: $500,000
• Minimum Net Worth: $1,000,000
• Franchise Fee: $25,000 for 1^st Location

Both of these taco franchises have the same minimum requirements for liquidity and net worth.

Taco John’s has a slightly lower initial franchise fee when compared to Del Taco.

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 with a 4% advertising fund fee.

Taco John’s charges a monthly 5% royalty fee with a 4% advertising fund fee.

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, Taco John’s 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.

Taco John’s 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 Steak

Taco John’s uses premium ingredients and crispy taco shells that are made in-house daily.

Check Out These Additional Resources

We hope this article gave you a better understanding of the advantages and disadvantages between Del Taco and Taco John’s.

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:

• How Much Does a Del Taco Franchise Cost?
• 15 Best Taco Franchises to Own From This Year
• Which Burrito Franchise Makes the Most Money?

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