Del Taco Franchise – How to Open, Cost & Profit

Franchise ownership procedures can be pretty challenging when you don’t have the necessary information.

In most cases, searching for relevant information on a preferred franchise opportunity becomes the default action. If you’re reading this article, you may want to own a Del Taco franchise.

If that’s true, you’ll find all the essential details here.

Del Taco Franchise Startup Cost, Profit & Opportunities

In this article, we’ve included vital information that provides a franchise overview, Del Taco’s franchise cost, how to join, incentives, reasons to invest, franchisee requirements, the ownership process, and support offered by the franchisor.

These and more areas are covered to help you find the correct information and also to help you start the ownership process. With that said, let’s jump right in to get complete details about this opportunity.

About Del Taco

With over five decades of exceptional service and experience, Del Taco is today known as a prominent restaurant brand with approximately 600 locations across 16 states.

Del Taco is known for its delicious American classics and Mexican-inspired favorites, earning it a loyal following among customers.

Since it opened its doors for business in 1964 at Yermo, California, the company has achieved significant milestones, including its franchise program, which continues to draw the interest of investors seeking to join its program.

Is this the right franchise for you? Read on for more details.

Why Own a Del Taco?

If you’re looking for reasons to join Del Taco’s franchise program, the following might interest you. This is a restaurant brand with a broad customer base appeal.

Its innovative and fresh menu offers are a delight for many.

Del Taco is also known for its strong, proven operations and the support provided to all its franchisees.

Franchisees are offered exclusive development territories across all locations. You also get the support of a dynamic investor board and the franchisor’s experienced leadership team.

Over its five decades of existence, Tel Taco has earned the respect of its franchisees due to its efficient and profitable franchise operations.

Proven performance and growing demand in new locations or markets are other vital points that set Del Taco apart from its competition.

  • Del Taco’s Financial Performance

Since it launched its franchise operations, Del Taco has had significant sales growth.

Company average unit sales are around $1,622,531. This is in addition to a strong balance sheet and solid unit economics that fuels its growth.

A full breakdown of its financial performance is provided in its franchise disclosure document (FDD).

Del Taco Franchisee Requirements

To own a Del Taco franchise, you’ll need to fulfill all set requirements by the franchisor.

The main requirement categories include operational, financial, and fees & investments. To be considered for such an opportunity, franchisees must be fully qualified.

Let’s look at each requirement category.

  • Operational

The competitive restaurant environment makes it necessary to seek significantly experienced ownership groups.

In other words, having operational restaurant background is a plus. Del Taco requires at least one team member to have recent multi-unit restaurant operational experience.

Also, to be considered for this opportunity, you’re expected to live within the market with at least 10% ownership in franchise operations. This is meant to ensure your commitment to effective operations.

  • Financial

Regarding financial requirements for ownership, this includes a minimum liquid capital of about $500k.

The amount you pay depends on the number of restaurant commitments. More units translate to more liquid money needed. Del Taco also requires a minimum net worth of around $ 2 million.

  • Fees & Investments

The fees and investment are an essential part of its franchise ownership requirements.

Franchise candidates will need a franchise fee of $35k, a royalty fee of 5% of net sales, and an advertising fee of 4% of net sales. A total investment sum of $812,700 to $2,368,000 is required.

The franchise disclosure document gives a full breakdown of the total investment sum. Here, you learn how the cost is allocated to different aspects of the operation.

What Types of Support are given?

To help new and existing franchisees efficiently run their franchise operations, Del Taco offers critical support in crucial areas of operation.

Training & operational support, marketing support, and customized marketing plans for new markets are three main categories. Let’s find out what each entails.

  • Training & Operational Support

Here, initial and ongoing training is handled by seasoned staff.

There are different types of management training, which take six weeks and are performed in the restaurant. Crew training takes half the time and is offered three weeks before opening.

In the case of opening support, professionals spend at least a week on site.

Ongoing training classes, meetings & support are provided too. Other areas of training & operational support include technology and access to its franchise intranet access.

  • Marketing Support

Del Taco offers tailored marketing support aimed at helping franchisees with successful restaurant openings while also providing dedicated field marketing managers to work alongside franchisees.

This collaborative support leads to more effective marketing of your Del Taco operations.

  • Customized Marketing Plans for New Markets

Del Taco has a customized marketing plan that provides various tools and materials to help with effective marketing.

The goal is to capture clients in new markets. These include disruptive & viral PR, point-of-purchase material, direct mailers & printed ads, and mobile-to-digital media.

Steps to Del Taco Franchise Ownership

Having provided basic information about Del Taco’s franchise offering, it’s time to focus on the steps to ownership. This is where you’ll need to get started.

To further explore details about Del Taco’s franchise offering on its site.

Next, complete its inquiry form. This requires basic details like name, email, phone, city, state, and liquid capital or cash requirement.

Other information to provide includes net worth and whether you have restaurant operating experience. Upon submission of the inquiry form, A franchise development representative contacts you.

Based on our discussions, your suitability for this opportunity is determined. The next step includes due diligence and receipt of the franchise disclosure document (FDD).

After going through the FDD, you get to meet with the development team for further discussion or review of the FDD.

So, have you been informed?

Here, we’ve only provided an overview of Del Taco’s franchise opportunity. You’ll need to visit Del Taco’s franchise page or fill out its inquiry form for more details about the opportunity.