5 Reasons to Purchase a Del Taco Franchise

Are you interested in learning the most popular reasons to purchase a Del Taco franchise?

At Del Taco, we’ve noticed there’s a wide variety of reasons our franchisees decide to invest in our restaurants.

In this article, we’ll take a look at five reasons you should purchase a Del Taco franchise.

1) Say Hello to Fresh Ingredients

Since 1964, Del Taco has been serving freshly prepared, craveable food at an unbeatable value for our customers.

This rare combination is one of the many reasons we are the second largest brand in the fast-growing Mexican quick-service restaurant (QSR) category.

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

Del Taco is able to differentiate ourselves from the competition by offering fresh ingredients to our customers with excellent service and convenience.

2) Prime Real Estate Availability

Another reason to consider franchising with Del Taco is the wide range of prime markets we have available across the United States.

To highlight this point, let’s take a look at the number of current locations between Taco Bell and Del Taco in the United States.

• Taco Bell: +7,700 Locations
• Del Taco: +590 Locations

You’ll notice Taco Bell has more than 7,000 restaurants when compared to Del Taco – leaving plenty of whitespace for franchise growth with Del Taco.

This presents you with an opportunity to grow and scale franchise operations in some of the largest and most exciting markets in America.

When you look at our map of available markets, you’ll see most of the cities and states outside of Idaho, Utah, and Nevada are open for new market growth.

Being able to develop multiple franchise locations in markets with this much potential is rare in the QSR Industry. It would be hard to do with other legacy brands.

3) Average Unit Volume

When considering any franchise investment, it’s important to understand the Average Unit Volume of the brand you’re looking at. This can be found in the Item 19 of the FDD (Franchise Disclosure Document).

The average unit volume (AUV) of Del Taco is $1.6MM as outlined in Item 19 (Table 19-1) of our franchise disclosure document.

This number includes average sales for freestanding franchised restaurants that have been operating for at least 12 months from the end of the 2019 to 2022 fiscal years.

Keep in mind, the gross sales for each restaurant will depend on a wide range of factors. However, the AUV from Item 19 can give you an idea of what to expect.

Each brand might provide a different breakdown of the Item 19 so make sure you review the footnotes to know how that data was derived.

4) Training & Support

Our proven business model offers franchisees the foundation and resources necessary to establish, manage, and grow your business.

At Del Taco, all our franchisees and their designated market operators receive initial and ongoing training from our seasoned operations support team.

Our franchise partners enjoy the benefits of customized marketing plans designed to support successful restaurant openings and maintain brand awareness.

Plus, you’ll have a dedicated field marketing manager who works alongside franchisees on a regular basis to coordinate and execute local marketing initiatives.

5) Multi-Unit Franchise Incentives

Due to the strong demand from new and existing franchisees, we offer an enhanced franchise growth incentive program geared toward multi-unit operators.

This program applies to eligible franchisees who commit to opening a minimum of three Del Taco restaurants in a new market.

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:

• 1% of Gross Sales for the first year
• 2% of Gross Sales for the second year
• 3% of Gross Sales for the third year
• 4% of Gross Sales for the fourth year
• 5% of Gross Sales for all subsequent years

Please note, multi-unit franchise incentives are granted at the sole discretion of Del Taco once certain other requirements are met.

Check Out These Additional Resources

We hope this article gave you a better understanding of the many reasons to purchase a Del Taco franchise.

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 Taco Franchise Makes the Most Money?

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