6/10

Franchimp Summary Rating

2 /10
Higher than 86% of peers

Franchise Summary

Description
This Franchise Disclosure Document (the "FDD" or "Disclosure Document") provides information regarding the operation of a Del Taco restaurant (the "Del Taco Restaurant" or "Restaurant"). A Del Taco Restaurant offers Mexican-American and American cuisine in a quick service setting
Company Background
Del Taco is the second-largest Mexican food chain in America, with more than 500 restaurants across 18 states. Del Taco offers guests fast and flavorful Mexican American food including burritos, tacos, quesadillas, nachos, salads, chalupas and fries. The company's menu also features a variety of value options for people on any budget.
Franchise Opportunity
Owning and operating a successful restaurant can be difficult. There are so many things to think about, from food and beverage choices to marketing and staffing. The restaurant industry is incredibly competitive, with new restaurants opening all the time. If you're not constantly evolving and innovating, you'll quickly fall behind your competitors. Del Taco is here to help. With over 50 years of experience in the quick service Mexican-American restaurant industry, we have the knowledge and expertise to help you succeed. Our franchisees benefit from our extensive training program and ongoing support services. Plus, we offer a variety of food and beverage options that will appeal to today's consumers.
Corporate Structure
Del Taco LLC originally formed as a California corporation on January 21, 1988, and converted to a California limited liability company on March 23, 2006. Their principal business address is 25521 Commercentre Drive, Suite 200, Lake Forest, California. They have operated and franchised Del Taco restaurants since February 1990.

Earnings Transparency

10 /10
This Franchise discloses far more about the financial performance of their franchisees compared to other franchises in the same industry.

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Standard" Units

Average Revenue Per Unit

Compared vs. QSR Industry

$1,618,863 / unit

Franchise Type: Standard

Average Revenue During 2022

$1,618,863
$282,742
Industry Low
$3,261,971
Industry High

Franchise Types Available

# Type Investment Fees

Employee Contact Database

# Name Position Phone Number Email Address

Distribution of Del Taco Franchisees

Del Taco Franchise System Development in 2022

FAQ

How much investment do I need to start my own Del Taco business?
Franchisees typically require at least $813 to $1 investment to get their Del Taco business started
What are the initial franchise fees for Del Taco?
Franchisees typically need to pay at least $46 in fees directly to Del Taco in order to earn the right to launch their business
How much money can I make with a Del Taco franchise? What are the average revenues for a typical Del Taco business?
We estimate that the average revenue of an individual Del Taco unit is approximately $1,618,863. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a Del Taco unit? What is my contractual commitment?
Del Taco franchisees are typically required to sign up to a 20 year contract initially. The renewal length is 20 years. You can of course exit early but don’t expect to get any refund!

Accessibility

2 /10
The Franchisor's investment costs ranges from $813,700 to $1,900,500 which is Much Higher than the $0 to $0 average in the QSR industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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