Del Taco®
What Is Del Taco?
Del Taco is a quick-service, fast-casual franchise specializing in Mexican-American foods such as tacos and burritos, along with burgers, shakes, French fries, breakfast items, and soft drinks. The business model centers on quick-service/fast-casual dining and includes drive-thru capability for certain end-cap locations. Restaurants operate from the Del Taco Fresh Flex prototypical building portfolio (1,152–2,304 sq ft), adaptable to free-standing, end-cap, or conversion sites, and Del Taco may also approve franchises in a variety of non-traditional venues such as airports, stadia, hotels, and entertainment facilities.
Del Taco Franchise: Pros and Cons
An unusually comprehensive onboarding program - a training and support score of 100 with 448 hours of initial training - shortens your learning curve, but steep estimated startup costs of $1,497,200 to $3,321,000 and an uncommon 10% manager equity requirement greatly increase upfront capital and financing challenges.
Pros
Cons
Lawsuits & Legal Risk
Del Taco has faced significant employment class litigation (a $50M wage-and-hour class settlement approved 2023) and customer-data breach claims that settled in 2023; affiliated parent-company franchise disputes involve terminations, marketing funds and breach claims, some still on appeal. Due diligence: review Item 3 litigation details, Item 12 territorial/post-termination clauses, marketing-fund rules, and labor-compliance obligations.
Territory Protection
Del Taco grants a site-specific, non-exclusive protected territory: a circular one-mile Protected Area around the approved restaurant (Exhibit A), with site-selection governed by the Franchise Agreement. The grant is contingent on performance and compliance; Del Taco retains rights to develop nearby units, sell via online/alternative channels, and use other trademarks.
Training & Support
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.
Franchisee Stability
Del Taco earns a Good Stability Score. Three-year turnover of 2.82% is well below the typical Food & Beverage franchise (around 5%) and sits toward the lower end of turnover among the 258 Food & Beverage systems used for comparison. Out of 29 total exits across the three reported years, ceased operations dominated with 20, alongside 9 franchisor buybacks, no terminations, and no non-renewals.
The dominance of ceased operations suggests location-level economics: operators chose to close underperforming locations rather than exits driven by franchisor enforcement. Beyond its industry-relative position, a 2.82% three-year turnover rate is genuinely exceptional in absolute terms across all of franchising. For prospective franchisees, examine unit-level economics in the geographies where closures have concentrated.
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
Maximum Investment
Minimum Investment Breakdown
Maximum Investment Breakdown
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.
Frequently Asked Questions
Is Del Taco a good franchise to own?
Whether Del Taco is a good franchise depends on your goals, experience, and local market. Key factors from the 2025 FDD: Del Taco operates 594 locations, received a legal risk score of 64/100, a training and support score of 100/100. Financial performance data is disclosed in Item 19. Prospective franchisees should review the full Franchise Disclosure Document and consult with a franchise attorney before making any investment decision.
Is a Del Taco franchise worth the investment?
The value of a Del Taco franchise investment depends on factors such as location, operator experience, and market demand. The initial investment ranges from $1,497,200 to $3,321,000. Del Taco disclosed average gross sales of $1,613,899 in 2025. Franchise investments carry inherent risk, and prospective buyers should conduct thorough due diligence before committing capital.
What is the failure rate of Del Taco franchises?
In the 2025 FDD, Del Taco reported 0 terminated franchises and 9 non-renewals out of 594 total locations. Franchise closures can result from many factors including market conditions, operator decisions, lease expirations, and franchisor enforcement actions. The FDD's Item 20 provides the most detailed unit turnover data.
How long does it take to break even with a Del Taco franchise?
Break-even timelines for Del Taco franchises are not disclosed in the 2025 Franchise Disclosure Document. Break-even periods vary significantly based on initial investment level, local market conditions, operating costs, and revenue ramp-up speed. Prospective franchisees should build a pro forma financial model using Item 7 cost estimates and, where available, Item 19 financial performance data from the FDD.
Is Del Taco a franchise or a corporate-owned business?
As of the 2025 FDD, Del Taco operates 461 franchised locations and 133 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.
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