Del Taco^®

Food & Beverage • Year: 2025

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What Is Del Taco?

Del Taco is a quick-service, fast-casual franchise offering a uniform menu of primarily Mexican-American foods such as tacos and burritos, along with burgers, shakes, French fries, breakfast items, soft drinks, and similar items. The primary service channels include fast-casual dine-in seating and drive-thru service, with restaurant staffing that typically ranges from about 20 to 45 employees. Franchise locations use the Del Taco Fresh Flex prototype (1,152 to 2,304 square feet) that is adaptable to free-standing buildings or end-cap drive-thru sites and may also be authorized in a variety of specified non-traditional venues (e.g., airports, stadia, malls, and similar sites).

Del Taco Franchise: Pros and Cons

With a perfect 100 on training and support, the franchisor provides unusually robust onboarding that shortens the learning curve for new owners, but the system shows notable legal risk: 12 disclosed lawsuits, including five fraud allegations, three franchisor-initiated enforcement actions, three franchisee-initiated settlements and two government penalties.

Pros

The franchisor scores a 100 on training and support (well above typical), meaning you’ll get an unusually robust onboarding program that reduces the learning curve and helps you open more smoothly.

The system has 594 outlets with 461 franchised locations (both well above typical for Food & Beverage), giving you scale benefits like brand recognition, tested operations, and supplier leverage larger concepts enjoy.

There have been zero outlet terminations (unusually low for this sector), indicating the franchisor rarely forces closures and locations tend to remain open under the system.

Cons

There is a cluster of legal and enforcement activity — 12 disclosed lawsuits, 5 cases alleging fraud, 3 franchisor-initiated enforcement actions, 3 franchisee-initiated settlements, and 2 government penalties (all well above typical) — which points to recurring disputes and active legal enforcement in the system.

Estimated startup costs are high: Item 7 ranges from about $1.5M to $3.3M with asset and training components also well above typical, meaning your upfront capital and likely financing needs will be substantially higher than most Food & Beverage franchises.

Operator exits are notable: 9 outlet non-renewals and 9 reacquired outlets (both well above typical), suggesting a higher-than-normal rate of franchisees choosing to leave the system.

Lawsuits & Legal Risk

61/100

NORMAL

Part 1 (The Facts): Recent matters include a major wage‑and‑hour class settlement, pending appeals, and franchisee suits over terminations, unilateral closures, and marketing‑fund or repair‑program disputes; many were resolved via settlement without admission of liability, reflecting active enforcement of standards. Part 2 (The Advice): Review Item 12 termination/cross‑default terms, marketing‑fund governance, post‑termination obligations, and labor compliance.

Territory Protection

49/100

NORMAL

Grants a protected operating area where the franchisor will not place other physical units. The franchisor retains the right to develop additional units in the surrounding market, sell via e‑commerce and alternative channels, and deploy different trademarks or retail concepts; protection is contingent on meeting performance quotas and site-specific obligations.

Training & Support

100

Excellent

The brand provides a comprehensive 448-hour training curriculum designed to prepare eight trainees for launch through a structured curriculum. The program includes on-site launch support for operational readiness; on-site assistance carries additional fees, and franchisees are responsible for travel and living expenses.

Unit Growth Analysis

This franchise shows extremely slow but slightly accelerating growth: units rose from 591 (2023) to 592 (2024) — +1 unit (+0.17%) — then to 594 (2025) — +2 units (+0.34%), with the latest YoY growth ~0.3%. For investors that means a stable, low‑risk system with very limited expansion — growth has roughly doubled in rate year-over-year but the absolute additions are minimal, suggesting near‑saturation or a weak development pipeline unless franchise expansion activity picks up.

How Much Does It Cost to Open a Del Taco Franchise?

Opening a Del Taco franchise requires a total initial investment of $1,497,200 to $3,321,000, according to the 2025 Franchise Disclosure Document. This range covers the franchise fee, real estate, equipment, training, and initial working capital needed to launch and operate through the early months.

Minimum Investment

$1,497,200

Franchise Fee

Real Estate

Equipment & Assets

Reserves

Training

Other

Maximum Investment

$3,321,000

Minimum Investment Breakdown

Franchise Fee$35,000

Real Estate$517,000

Equipment & Assets$466,000

Reserves$28,000

Training$242,000

Other$209,200

Maximum Investment Breakdown

Franchise Fee$35,000

Real Estate$1,324,000

Equipment & Assets$857,000

Reserves$65,000

Training$321,000

Other$719,000

Investment Analysis

This investment analysis is coming soon. Have ideas for other analyses you'd like us to add? Get in touch.

The initial investment amounts shown are estimates only. Actual costs may vary based on location size, business model, and multi-unit ownership arrangements. We recommend reviewing the full Franchise Disclosure Document for complete details.

How Much Do Del Taco Franchise Owners Make?

Del Taco franchise locations reported average gross sales of $1,613,899 and median gross sales of $1,541,335 in 2025, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:

$1,613,899

Median Gross Sales:

$1,541,335

High Gross Sales:

$6,898,837

Low Gross Sales:

$380,237

Sample Size:

387

Percent Attaining Average:

45.0%

Franchise vs Corporate Performance: Franchised freestanding restaurants averaged $1,613,899 in sales in 2024, which is lower than the company-owned average sales of $1,804,158 reported for the same year, indicating company-owned outlets on average generate higher sales volumes in this dataset.

Performance Variability Analysis: There is substantial variability in franchised unit performance in 2024, with highest sales of $6,898,837 and lowest of $380,237, and only 45% of franchised units met or exceeded the average, signaling a wide dispersion around the mean.

Data Scope and Limitations: The Item 19 sales figures for franchised units do not include cost or expense data (company-owned units provide P&L detail), and 2022 was a shortened fiscal year that was annualized, so cost and profitability comparisons should be made cautiously.

Frequently Asked Questions

How much does it cost to open a Del Taco franchise?

The total initial investment for a Del Taco franchise ranges from $1,497,200 to $3,321,000, according to the 2025 Franchise Disclosure Document. This includes the franchise fee, real estate, equipment, training, and working capital.

What is the Del Taco initial franchise fee?

The initial franchise fee for Del Taco is $35,000, as stated in the 2025 FDD. This fee is paid upon signing the Franchise Agreement.

How much do Del Taco franchise owners make?

Del Taco franchise locations reported average gross sales of $1,613,899 and median gross sales of $1,541,335 in 2025, based on Item 19 of the Franchise Disclosure Document. Actual earnings vary by location, market, and operator experience.

Does Del Taco have any franchise lawsuits or legal issues?

Del Taco received a legal risk score of 61 out of 100 in the 2025 FDD analysis. Part 1 (The Facts): Recent matters include a major wage‑and‑hour class settlement, pending appeals, and franchisee suits over terminations, unilateral closures, and marketing‑fund or repair‑program disputes; many were resolved via settlement without admission of liability, reflecting active enforcement of standards.

Does Del Taco offer exclusive franchise territories?

Del Taco received a territory protection score of 49 out of 100. Grants a protected operating area where the franchisor will not place other physical units.

What training does Del Taco provide to new franchisees?

Del Taco received a training and support score of 100 out of 100. The brand provides a comprehensive 448-hour training curriculum designed to prepare eight trainees for launch through a structured curriculum.