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How Much Does a Del Taco Franchise Make?

How Much Money Does a Del Taco Franchise Make

Are you searching for information on how much money a Del Taco franchise makes?

At Del Taco, this is one of the most common questions we receive from potential franchisees.

In this article, we’ll take a look at how much money the average Del Taco franchise earns per year.

What Does Average Unit Volume Mean?

Based upon Federal Trade Commission guidelines, all franchisors are precluded from providing earnings estimates or profit potential to franchisees.

However, you can get an idea of how much each franchise makes by looking at the average unit volume (AUV) in Item 19 of the brand’s latest Franchise Disclosure Document.

Each brand’s AUV is typically calculated with the total number of company-owned or franchised store sales divided by the number of company or franchised units.

It’s important to understand every brand calculates their AUV differently. Be sure to check the footnotes underneath the Item 19 Table being referenced in the FDD for more information.

How Much Does a Del Taco Franchise Make?

At Del Taco, our average unit volume is $1,618,863 as outlined in Item 19 of our most recent Franchise Disclosure Document.

This number comes from Table 19-1 and represents the average sales figures for the freestanding franchised Del Taco restaurants that had been operating for at least 12 months, as of the end of the 2019 to 2022 fiscal years.

Please note, the net sales for each restaurant will depend on a wide range of factors. However, the AUV from Item 19 gives you a general idea of what to expect.

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 Charge 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

The term “Net Sales” represents 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.

What Are the Del Taco Franchise 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.

Does Del Taco Offer Multi-Unit Incentives?

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

Check Out These Additional Resources

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

At Del Taco, we work with our franchisees every step of the way to get your 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.