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How Much Does a Del Taco Franchise Cost?

How Much Does a Del Taco Franchise Cost

Are you interested in learning how much a Del Taco Franchise costs? If so, you’re not alone.

When engaging with us in the process of buying a Del Taco franchise, questions focused on cost and fees are the most common we receive.

In this article, we’ll look at several parts that make up the costs of opening a Del Taco then give you an idea of how much you can expect to invest.

Del Taco Franchise Fee

If you purchase the rights to develop and operate a Del Taco Restaurant under a Franchise Agreement, you must pay us a Franchise Fee.

Our Initial Franchise Fee for one Del Taco Restaurant is $35,000 plus a promotional fee of $10,000 due when you sign the Franchise Agreement.

If you plan to open multiple locations, you must pay the full franchise fee of $35,000 for the first restaurant plus a $10,000 deposit on the franchise fee for each additional restaurant.

These amounts will be applied toward the applicable initial franchise fees listed above. You will then pay the remaining balance of the franchise fee ($25,000 for the second and subsequent locations) as they open.

The promotional fee must be spent with the approval and coordination of our Marketing Department for the purpose of promoting your restaurant.

All of these fees are fully earned on the date they are received by Del Taco, and we have no obligation to refund them for any reason.

Del Taco Franchise Royalties

Like most franchises, you’ll notice Del Taco has ongoing royalty fees. Our royalties at Del Taco are:

  • 5% Royalty of Net Sales
  • 4% Marketing Fee of Net Sales

Net sales include all revenue from your restaurants, except for refunds and sales or similar taxes.

These royalties ensure you have the best possible resources to run your business and bring customers to your location.

How Much Does a Del Taco Franchise Cost?

The estimated initial investment for a Del Taco Franchise is $812,700 - $2,467,500 and includes the initial franchise fees, training costs, inventory, build-out expenses, computer hardware and software, insurance and three months working capital.

Your investment will vary for each Del Taco location depending on the market you choose. Please refer to Items 5 and 7 in our Franchise Disclosure Document (FDD) for a clear representation of the total fees and investment needed.

This is simply an estimate, and the actual cost can vary largely depending on the site-specific conditions and requirements for each location.

Does Del Taco Offer Incentives for Multi-Unit Franchisees?

Yes, Del Taco offers an incentive for multi-unit franchisees who choose to sign up for three or more stores under our Development Incentive Program.

Under the Development Incentive Program for qualified buyers, if you sign a Development Agreement for a minimum of three (3) restaurants to be developed and opened under the development schedule during the time frames specified in the Development Agreement, and certain other requirements are met, you may be eligible for the following incentive:

The Royalty (which is currently 5% of Gross Sales) will be reduced to: (i) 1% of Gross Sales for the first year; (ii) 2% of Gross Sales for the second year; (iii) 3% of Gross Sales for the third year; (iv) 4% of Gross Sales for the fourth year; and (v) 5% of Gross Sales for all subsequent years.

Del Taco Financial Requirements

Due to the cost of opening a restaurant with Del Taco, we have three minimum financial requirements all potential franchisees must meet.

  • Minimum Liquidity: $500,000
  • Minimum Net Worth: $1.0MM
  • Franchise Fee: $35k per Location

Please note, the number of restaurants you’ve committed to developing and the size of your territory will determine your total financial requirements.

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

  • Business Partners
  • Stocks & Bonds
  • Home Equity
  • 401k Rollovers

These are just a few of the options you may like to consider in order to meet our financial requirements.

Check Out These Additional Resources

We hope this article gave you a better understanding of how much a Del Taco Franchise costs.

At Del Taco, we work with our franchisees every step of the way in order 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.