Del Taco Franchise FDD, Profits & Costs (2025)
Del Taco, a prominent name in the fast-food industry, distinguishes itself with a unique blend of Mexican and American dishes.
Founded in 1964 and headquartered in Lake Forest, California, Del Taco has established itself as a major player in the quick-service restaurant (QSR) sector.
The franchise began expanding in 1967, leveraging a model that combines a traditional QSR’s speed and convenience with the quality and freshness reminiscent of fast-casual dining, a niche known as QSR+.
Del Taco offers a diverse menu that includes tacos, burritos, burgers, and fries, catering to a wide range of tastes and preferences.
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Initial Investment
How much does it cost to start a Del Taco franchise? It costs on average between $1,312,000 – $3,085,000 to start a Del Taco franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Franchise Fee | $35,000 |
| Promotional Fee | $10,000 |
| Fee for Architectural and Engineering Services | $27,000 – $124,000 |
| Environmental Assessment | $2,500 – $34,000 |
| On-site Improvements | $186,000 – $650,000 |
| Building Improvements | $490,000 – $1,200,000 |
| Furnishings, Fixtures and Equipment | $400,000 – $750,000 |
| IT Equipment & Installation, Computer-related Services & Licensing | $59,000 – $100,000 |
| Technical Support | $1,700 – $3,500 |
| Initial Training | $15,000 – $25,000 |
| Crew Training | $48,000 – $68,000 |
| Additional Funds – 3 Months | $28,000 – $65,000 |
| Inventory | $7,000 |
| Licenses, Fees and Deposits | $3,000 – $6,000 |
| Fee for trade area survey analysis | $0 – $7,500 |
| Total Estimated Initial Investment | $1,312,000 – $3,085,000 |
Average Revenue (AUV)
How much revenue can you make with a Del Taco franchise? A Del Taco franchised restaurant makes on average $1,525,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,137,000 yearly revenue for similar Mexican franchises.
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Del Taco Franchise Disclosure Document
Frequently Asked Questions
How many Del Taco locations are there?
As of the latest data, Del Taco operates 593 locations across the United States. The majority of these restaurants are in California, which hosts 355 locations, accounting for approximately 60% of the total.
What is the total investment required to open a Del Taco franchise?
The total investment required to open a Del Taco franchise ranges from $1,312,000 to $3,085,000.
What are the ongoing fees for a Del Taco franchise?
Del Taco franchisees pay a 5% royalty fee and a 4% marketing fee, both based on net sales. These fees support brand consistency, system access, and marketing campaigns, collected weekly via electronic transfer.
What are the financial requirements to become a Del Taco franchisee?
To qualify as a Del Taco franchisee, you must meet specific financial criteria: a minimum net worth of $1 million and at least $500,000 in liquid assets. These requirements ensure you have the financial stability and resources necessary to support the initial investment and ongoing operations of a Del Taco franchise.
How much can a Del Taco franchise owner expect to earn?
The average gross sales for a Del Taco franchise are approximately $1.53 million per location. Assuming a 15% operating profit margin, $1.53 million yearly revenue can result in $230,000 EBITDA annually.
Who owns Del Taco?
Del Taco is owned by Jack in the Box Inc., a prominent American fast-food company. In December 2021, Jack in the Box announced its intention to acquire Del Taco for approximately $575 million. The acquisition was finalized in March 2022, bringing Del Taco under the Jack in the Box corporate umbrella.
Disclaimer
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