Del Taco Franchise FDD, Costs & Fees (2025)

Del Taco is a fast-food franchise that offers a variety of Mexican-inspired dishes, including tacos, burritos, and quesadillas, providing flavorful options with fresh ingredients.

Del Taco, a notable entity in the fast-food sector known for its Mexican-inspired offerings, was established in 1964 by Ed Hackbarth and David Jameson in Yermo, California.

The company began franchising in 1967, creating global opportunities for franchisees. Starting with a modest menu featuring 19¢ tacos and 24¢ cheeseburgers, Del Taco made a striking debut with $169 in sales on its first day, equivalent to selling 900 tacos.

Based in Lake Forest, California, Del Taco has maintained a robust presence in the Pacific Southwest region of the United States. The chain's extensive menu features a mix of Mexican dishes like tacos, burritos, and quesadillas, alongside American staples such as hamburgers and crinkle-cut fries.

What sets Del Taco apart from its competitors is its distinctive combination of Mexican and American cuisine, appealing to a wide audience with its varied menu. The use of fresh ingredients and a broad selection of options provide a competitive advantage in the quick-service restaurant industry.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Franchise Fee $35,000
Promotional Fee $10,000
Fee for Architectural and Engineering and Other Related Consultant Services $27,000 to $124,000
Environmental Assessment $2,500 to $34,000
On-site Improvements $186,000 to $650,000
Building Improvements $490,000 to $1,200,000
Furnishings, Fixtures and Equipment $400,000 to $750,000
IT Equipment & Installation, Computer-related Services & Licensing $59,000 to $100,000
Security Cameras $6,000 to $8,000
Technical Support Expenses $1,700 to $3,500
Initial Training Expenses $194,000 to $253,000
Crew Training Expenses $48,000 to $68,000
Additional Funds – 3 Months $28,000 to $65,000
Inventory $7,000
Licenses, Fees and Deposits $3,000 to $6,000
Fee for Trade Area Survey Analysis $0 to $7,500
Total Estimated Initial Investment $1,497,200 to $3,321,000

Franchise Disclosure Document

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Competitors

Below are some of

Del Taco

key competitors in the

Mexican

sector.

Started franchising
Franchisees

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Franchise fee

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Royalty fee

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Investment

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Revenue (AUV)

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Gross Profit

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EBITDA

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Home-based

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Passive investment

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FDD
Del Taco
1967
461
+
53%
53%
$35,000
5.00%

$1,497,000

-

$3,321,000

n.a.

$1,541,000

Upgrade

74.4%

n.a.

Upgrade

16.2%

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2023
6
+
0%
0%
$45,000
5.00%

$1,267,000

-

$2,776,000

Upgrade

n.a.

$1,452,000

73.3%

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
2024
0
+
n.a.
n.a.
$25,000
6.00%

$432,000

-

$773,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
2022
0
+
n.a.
n.a.
$45,000
6.50%

$271,000

-

$575,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2022
1
+
n.a.
n.a.
$35,000
6.00%

$457,000

-

$584,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
1996
25
+
0%
0%
$30,000
4.00%

$2,426,000

-

$5,058,000

Upgrade

n.a.

$2,307,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2023
0
+
n.a.
n.a.
$35,000
6.00%

$273,000

-

$731,000

Upgrade

n.a.

$1,069,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
Yes
Upgrade
Yes

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$49 / month
Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

?

Franchise Disclosure Documents
Advanced filtering and sorting
Watchlist

?

Priority support

?

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Franchisee

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Training 

Prior to launching a Del Taco restaurant, franchisees participate in an extensive training program. This comprehensive program covers all facets of restaurant management, including operational methods, customer service practices, and marketing strategies.

The aim is to equip franchisees with the knowledge and skills needed to run their businesses successfully.

Beyond the initial training, Del Taco places a high value on continuous education. They offer ongoing support and additional training sessions to keep franchisees informed about the latest operational procedures and brand standards, ensuring consistent and effective management of their franchises.

Territory Protection

Del Taco franchisees do not receive exclusive territorial rights. Instead, they are granted a specific location to operate their restaurant.

While this provides a defined area for their business operations, it does not prevent the establishment of other Del Taco restaurants or outlets nearby. The franchisees’ rights are confined to their designated location, and any operation beyond this area requires prior written approval from the franchisor.

This arrangement underscores the importance of adhering strictly to the assigned location and recognizes that no broader territorial exclusivity is provided.

Number of units

2025
Franchised units

301

421

461

Company-owned units

290

171

133

Total units

591

592

594

Competitors

Taco Cabana

Franchisees

?

6
+
0%
0%
Investment

?

$1,267,000 - $2,776,000

Barrio Burrito Bar

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$432,000 - $773,000

Talkin' Tacos

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$271,000 - $575,000

Taco Pros

Franchisees

?

1
+
n.a.
n.a.
Investment

?

$457,000 - $584,000

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Revenue (AUV)

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Revenue growth (last 3 years)

?

Profit metrics

?

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