Del Taco
Del Taco Restaurants Inc.
Company Information
25521 Commercentre Drive, Suite 200 Lake Forest, California 92630
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.
Not Available
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Franchise Rating
Franchimp Summary Rating
6/10
Earning Transparency
10/10
Investment Accessibility
2/10
Summary of potential earnings
$1,618,863 / unit
Average Revenue During 2022QSR
$282,742
Industry Low
$3,261,971
Industry High
Franchise System Development
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Distribution of Del Taco Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $46,700 Maximum: $106,000
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $813,700 Maximum: $1,900,500
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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