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Del Taco vs TacoTime: Which Franchise Is Best?

Del Taco vs TacoTime: Which Franchise Is Best?

Are you interested in learning the differences between franchising with Del Taco vs TacoTime?

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 TacoTime when it comes to franchising.

1) Available Markets

Finding an available market where you can build your restaurants is one of the most important steps in your journey to franchise ownership.

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

  • Del Taco: +590 Locations
  • TacoTime: Nearly 300 Locations

With only a few hundred locations throughout the United States, both brands have plenty of whitespace for franchise growth – especially when compared to Taco Bell with more than 7,000 locations.

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.

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.

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.

Del Taco Investment Requirements:

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

TacoTime Investment Requirements:

  • Minimum Liquidity: $150,000
  • Minimum Net Worth: $250,000
  • Franchise Fee: $30,000 per Location

While the liquidity and net worth requirements for TacoTime are lower than Del Taco, they both have a similar initial franchise fee.

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 and 4% ongoing marketing royalty.

TacoTime has a continuing royalty fee that is the greater of 6% of gross sales or $400 per week. Their advertising fee is 4% 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
  • Home Equity

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

Currently, the TacoTime franchising website doesn’t mention if they allow their franchisees to operate with business partners.

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.

TacoTime 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

TacoTime believes fresh, real ingredients make better food. Every morning, they make an array of salsas along with fresh tortilla chips and taco shells.

Check Out These Additional Resources

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

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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