Del Taco Franchise Review 2025: Ratings & Verdict

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

Del Taco fits first-time franchise buyers looking for a mid-scale food & beverage concept.

✓ Strengths

⚠ Risks to review

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$1.5M - $3.3M

Franchise fee (Item 5)

$35K

Royalty (Item 6)

5% + 4% ad

Item 19 median rev

$1.54M all freestanding franchised restaurants open at least 12 months

System size (Item 20)

461 +58

Agreement term

20 yrs

Training (Item 11)

240 days

Company-owned units

133

Item 3 litigation

None disclosed

Model Del Taco's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.

Buyer qualifications

•No exclusive territory•Owner-operator required✓No bankruptcy disclosed✓No Item 3 litigation

Data extracted from the 2025 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 5% + ad fund 4% on gross sales.

PROJECTED ANNUAL SALES$1,540,000

$100k$2.8M

Royalty (5%)

Ad fund (4%)

Total / year

▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

594

Total units open

40 franchised, net +2 total system

Units opened last year

9 franchised reacquired by franchisor

Units closed last year

+2 units

Net unit growth

FY 2024

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2025 filing.

4

Risks to review

3

Strengths identified

5

Questions to ask

Industry Benchmarks

How Del Taco ranks against 751 Food & Beverage peers we've analyzed.

Initial investment

94th pct · of 751 peers

Franchise fee

36th pct · of 751 peers

System size

89th pct · of 751 peers

Food & Beverage industry averages

Avg investment

$589K - $1.4M

Avg franchise fee

$37K

Avg system size

261

Franchises analyzed

751

How Del Taco stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
Del Taco Disclosed $35K $1.5M - $3.3M 5% 461
Burger KingSimilar price Disclosed $50K $2.2M - $3.3M 4.5% 5,518
Doctor's AssociatesBiggest system None $15K $227K - $630K 8% 18,773
Vintage Hospitality GroupTop-rated in category Disclosed $50K $3.5M - $6.4M 5.5% 33

Compare side-by-side ↗

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Frequently Asked Questions

How much does a Del Taco franchise cost?

Del Taco requires a $35,000 initial franchise fee and a total initial investment range of $1,497,200–$3,321,000, per the most recent FDD on file.

Who owns Del Taco?

Del Taco franchises are sold by DEL TACO LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.

Does Del Taco disclose financial performance (Item 19)?

Yes. Del Taco discloses Item 19 financial performance representations with reported revenue around $1,541,335. See the financials sub-page for the full distribution.

What ongoing fees does Del Taco charge?

Franchisees pay a royalty of 5% of net sales and an advertising fund contribution of 4% of net sales on gross sales as defined in Item 6 of the FDD.

How many Del Taco locations are there?

As of their 2025 FDD, Del Taco has 461 total locations, with 58 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.

Does Del Taco offer franchisee training and support?

Yes. Del Taco's most recent FDD documents approximately 240 days of initial training, typically split between classroom and on-site components. See Item 11 of the FDD for the full training and support schedule.

Does Del Taco grant exclusive territory?

No. Del Taco does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.

What are the renewal and exit terms?

Per the FDD, Del Taco discloses an initial agreement term of 20 years. Review Items 10 and 17 for the full renewal and termination provisions.

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