Taco Franchise vs Sub Franchise: Everything You Need to Know

Are you interested in learning the differences between owning a taco franchise vs submarine sandwich franchise?

At Del Taco, we understand you have a lot of choices to make when it comes to finding the best franchise opportunity for you.

In this article, we’ll take a look at three key differences between a taco restaurant and sub restaurant when it comes to franchising.

What Is a Taco Franchise?

A taco franchise is typically defined as a restaurant that primarily focuses their menu on the Mexican segment with a focus on tacos.

Some of the most popular taco franchises in the United States are:

• Del Taco
• Taco Bell
• Moe’s
• Taco John’s
• Qdoba
• TacoTime
• Rusty Taco
• Taco Bueno

These brands have a long history of serving tacos along with other Mexican favorites like burritos, nachos, quesadillas, and more.

Taco franchises are some of the most popular restaurants in the United States and have been expanding into international markets.

What Is a Sub Franchise?

Next up, a sub franchise is commonly known as a restaurant that primarily focuses their menu on the submarine sandwich segment.

A few of the most popular sub sandwich franchises in the United States are:

• Subway
• Firehouse Subs
• Jimmy John’s
• Larry’s Giant Subs
• Quizno’s
• Jersey Mike’s
• Lenny’s
• Blimpie
• Capriotti’s
• Togo’s
• Charleys Philly Steaks
• Penn Station
• Arby’s
• McAlister’s Deli
• Honeybaked Ham
• Schlotsky’s
• Potbelly Sandwich Works
• Primo Hoagies
• Cheba Hut Toasted Subs
• Which Wich

These brands are well known for serving sub sandwiches with a wide range of toppings. Plus, a selection of chips, salads, and desserts guests can choose from.

You shouldn’t have trouble finding a sub franchise regardless of where you live or visit. Subway has over 37,000 locations in more than 100 countries and territories!

Menu Variety

Most sub franchises have a fairly complex menu with a wide variety of toppings and combinations for customers to add and remove as needed.

Orders are typically taken on an app, over the phone, or in-person. And most sub franchises offer add-ons like chips, salads, and cookies or some other type of dessert.

Taco franchises tend to carry burritos, nachos, quesadillas and other Mexican favorites alongside tacos with your choice of hard or soft shells.

At Del Taco, 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 on our menu 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

Our taco franchise is able to differentiate ourselves from the competition by offering fresh ingredients along with excellent service and convenience.

Real Estate & Site Requirements

Most taco and sub franchises offer flexible prototypes that can fit in a wide variety of traditional and non-traditional venues like c-stores, airports, and college campuses.

However, when it comes to Del Taco, we require all of our restaurants to have a drive-thru lane. This is why we prefer free-standing locations or end caps.

The majority of sub franchises do not require a drive-thru lane. This gives you the option to build an inline location inside a shopping center.

Financial Requirements

The total initial investment cost for a taco or sub franchise can range anywhere between a few hundred thousand to over two million dollars.

You can learn more about the estimated initial investment for each brand by referencing Item 7 in their most recent Franchise Disclosure Document.

As a franchisee, you’ll also be responsible for paying ongoing fees. These fees will vary depending on the brand you decide to do business with.

For example, Del Taco has three minimum financial requirements all our potential franchisees must meet.

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

As a franchisee, you’ll also be responsible for paying the ongoing royalty fees below…

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

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

Check Out These Additional Resources

We hope this article gave you a better understanding of the differences between owning a taco franchise vs sub franchise.

At Del Taco, we serve freshly prepared, craveable food at an unbeatable value and are looking for franchisees who want to grow with our brand.

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

• How Much Does a Taco Franchise Cost?
• 10 Best Taco Franchises in the USA
• Which Taco Franchise Makes the Most Money?

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