How to Start a Taco Business

Are you interested in learning how to start a taco business? Owning a taco franchise is a great way to enter the $89B Mexican Restaurant Industry.

At Del Taco, we have a wide range of available markets across the USA and are looking for franchisees who want to partner with our Better Mex brand.

Whether you’re a seasoned entrepreneur or first-time business owner, our franchise recruitment team is here to help you every step of the way.

In this article, we will walk you through eight easy steps that will show you how to start a taco business with Del Taco.

1) Submit Contact Form

To get started, you’ll need to submit a contact form on any page of our website.

This form requires you to submit the following information:

• First & Last Name
• Email Address
• Phone Number
• Location
• Cash Available
• Net Worth
• # Of Locations

With the cost of opening a restaurant with Del Taco in mind, we have two minimum financial requirements all potential franchisees must meet.

• Minimum Liquidity: $500,000
• Minimum Net Worth: $1.0MM

If you currently don’t meet these financial requirements, there are many potential sources of liquidity that may be overlooked. For example:

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

After you submit your contact form, a member of our team will be in-touch with more information.

2) Connect with our Team

Next, we will schedule an introduction call to answer questions and walk you through everything you need to know as you begin your franchising journey.

This is a great time for you to learn more about how our new franchise recruitment process works along with what we will need in terms of documents on your end.

Plus, it allows our team to receive a better understanding of your overall franchising goals and how we can make them a reality.

3) Submit Required Documents

After our conversation, we'll send you our required documents to move forward in the process: our Non-Disclosure Agreement (NDA), Initial Inquiry Form, and Franchise Disclosure Document (FDD).

These documents will give us more insight into your franchising goals and determine next steps.

4) FDD & Market Points Review

During your due diligence period, you’ll review our Franchise Disclosure Document (FDD) and be able to speak with other franchisees in our system.

The FDD is a legal document that is part of the pre-sale due diligence process. You’ll find the FDD is full of information that will help answer your questions about franchising with Del Taco.

This document includes information on our company background, profiles of our brand leadership, fees, investment ranges, and store level performance.

We will also review market points located in your desired territory during this call.

5) Financial Review

This is the most paperwork intensive process you’ll go through during our steps to become a Del Taco Franchisee.

In this stage, you’ll submit requisite documents to allow us to complete a full financial review including:

• Del Taco Franchise Application
• Credit & Background Check Authorization
• Payments & Tax Returns
• Personal Tax Returns
• Other Required Documents

During this time, you’ll have the ability to speak to current franchisees and ask questions about their experience with our brand.

6) Meet Operations Leadership

After we have gathered all the required documents, we will schedule a time for you to meet with the Del Taco Senior Operations Team.

This is an opportunity for you to ask questions and build a personal relationship with the Corporate Leaders of our brand. We typically host these meetings on a video call.

7) Finalize Development Agreement

During this stage, we will finalize your market points and opening schedule. At that time, we will send franchise agreements for you to sign.

8) Taco Business Awarded

After receiving your Development Agreement and initial franchise fees, you will be a developer with Del Taco. Once you sign your first Franchise Agreement, you will be an official franchisee. Congratulations!

Orientation & Training

Your orientation will start with your regional real estate development manager (REDM). They will assist you with navigating the real estate and site selection process.

Once you have your site, you will be assigned a regionally based construction manager. They will provide you with CAD drawings of our prototype layout.

Before opening your restaurant, we offer a Franchise Management Training Program (FMTP) to qualify you, your operating principle, and your restaurant managers to operate the restaurant. This program is comprised of 40 hours of classroom training and 400 hours of on-the-job training.

How Long Does This Process Take?

At Del Taco, we can go as fast as you are willing to go depending on your individual timeline.

We’ve found the entire process to become a franchisee with Del Taco typically ranges from 60 to 120 days.

This timeline includes the required 14-day franchise disclosure period and 7-day disclosure period after you receive the franchise agreement.

Check Out These Additional Resources

We hope this article gave you a better understanding of how to start a taco business.

At Del Taco, our restaurant development team works with our franchisees every step of the way to make the process as seamless as possible.

Here are some additional online resources you may like to check out:

• Which Taco Franchise Makes the Most Money?
• 5 Reasons to Buy a Taco Franchise
• Del Taco vs Taco Bell: Which Franchise Is Best?

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