Do I need previous food service experience before I become a Del Taco franchise owner?
Yes. You must have an approved operating partner. Many of our existing franchisees are individuals who loved the Del Taco brand and wanted to invest in a growing, profitable business. They are investors who were looking to grow their investment portfolio or they worked in the corporate world but wanted to be in business for themselves. Some of our franchise owners own other businesses such as gas and convenience stores, hotels or other restaurant concepts and wanted to diversify. Our ideal franchisee is an experienced multi-unit restaurant operator, but if you do not have specific restaurant experience, you can partner with an experienced operating partner. This person must have at least a 10 percent ownership interest in the business. We can direct you in finding a great operating partner. Contact us to learn more about partnering with an experienced operating partner.
What are the minimum financial requirements?
Del Taco requires minimum liquidity of $500,000, and a minimum net worth of $2 million. The number of restaurants you commit to develop and the size of your territory will determine your total financial requirements.
Does Del Taco offer financing to open a restaurant franchise?
Del Taco does not provide financing, however, we do provide a list of banks/financing institutions that have expressed an interest in lending to Del Taco franchisees. To facilitate financing, Del Taco is listed on the SBA Registry. Del Taco is a public company: TACO (NASDAQ). You can visit our investor website to learn more about options available to you.. Please contact us for more information.
How much is the franchise fee and initial investment?
The initial franchise fee is $35,000. The total estimated initial investment range is $812,700-$2,368,000 and includes the initial franchise fees, training costs, inventory, build-out expenses, computer hardware and software, insurance and three months working capital. The investment varies 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.
What are the royalty and marketing fees?
The ongoing royalty fee is 5% of net sales and the marketing fee is 4% of net sales.
What territories are available to open my Del Taco?
Del Taco is based out of beautiful Orange County, California and has had a long and prosperous track record of opening up successful stores in the Western region of the United States. In recent years, Del Taco has successfully opened up new markets in states including: Oklahoma, Georgia, Florida, Michigan etc. and is looking to carry on this tremendous momentum in selected markets throughout the United States. We are currently looking for capable, franchise partners to bring our superior product to markets where there is a need for a fresher alternative for Mexican fast food. Please review the map for available territories or call us to discuss your interest at 949-462-7319.
How will Del Taco define my territory?
Del Taco will design an exclusive multi-unit development area based on your geographic preference, financial strength and experience. Multi-unit development agreements are negotiated to indicate the number of restaurants to be developed in a defined geographic area over a specified period of time. The potential number of locations in your market will depend on many factors, including size of the market, population, competition and timing. Give us a call to discuss your interest.
Can I expect assistance in finding locations?
Whether you decide on a new free-standing building or a conversion of an existing building, we have flexible restaurant footprints to help you gain access to many real estate opportunities. Del Taco has a sophisticated in-house Real Estate Department that works hand in hand with franchisees and preferred commercial brokers. This team will work to create a market plan map and identify key trade areas to ultimately find suitable real estate locations for each future Del Taco. Through sophisticated site selection and market planning support, as well as an in-house construction and design team, we support you every step of the way.
What type of training and support will I receive from Del Taco?
Our professional and experienced operations support team is with you before and after you open your doors. In addition to extensive hands-on management and crew training before you open your store, as well as new store opening support, Del Taco franchisees receive ongoing assistance from a dedicated Franchise Business Consultant and Franchise Marketing Manager. You will benefit from ongoing management/crew training, state-of-the-art POS systems, 24-hour technical support and powerful marketing materials to help grow your Del Taco business.
What is the next step?
For franchise ownership information, call us at 949-462-7319, or complete this brief online form. You will be contacted by one of our franchise representatives to discuss your background, your interest and the Del Taco opportunity.