Del Taco Franchise
Cost, fees, owner earnings, closure rate and litigation for a Del Taco franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
Del Taco discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Franchised restaurants: avg sales $1,613,899 (2024). Company-owned: avg sales $1,804,158, operating profit $383,324 before rent. Data from 387 franchised, 116 company-owned locations. No audited verification.
What a Del Taco franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $35,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 4% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 9% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $1,497,200 – $3,321,000 | Item 7 — franchisor's own low/high estimate |
Royalty 5%, Marketing 4%, Tech $173.81/mo (1st-5th units). Multiple ancillary fees including training, audit, transfer ($5K).
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Del Taco system size and owner turnover
| Total outlets | 594 |
| Ceased operations | 9 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 32 |
| Closure rate | 1.5% of outlets |
9 ceased operations (2024), 0 terminations, 32 transfers suggest consolidation pressure.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Del Taco worth it? — how it compares to 164 similar franchises
| Ongoing fees | 9% of sales | steeper than 68% of quick service restaurants franchises |
| Startup cost | from $1,497,200 | pricier than 91% of peers |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 1.5% of outlets | about average |
| Disclosed lawsuits | 12 | more litigious than 96% of peers |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Del Taco
The franchisor's framing: Franchised restaurants: avg sales $1,613,899 (2024). Company-owned: avg sales $1,804,158, … We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Del Taco franchise — frequently asked
- How much does a Del Taco franchise cost?
- The FDD lists a total initial investment of about $1,497,200–$3,321,000, including a $35,000 initial franchise fee.
- How much do Del Taco franchise owners make?
- Franchised restaurants: avg sales $1,613,899 (2024). Company-owned: avg sales $1,804,158, operating profit $383,324 before rent. Data from 387 franchised, 116 company-owned locations. No audited verification. We grade this disclosure C for honesty.
- What are the Del Taco franchise fees?
- Del Taco's FDD discloses a $35,000 initial franchise fee, a 5% royalty on gross sales, a 4% advertising-fund contribution, for roughly 9% of gross sales in recurring fees before rent, labor, or debt service. Royalty 5%, Marketing 4%, Tech $173.81/mo (1st-5th units). Multiple ancillary fees including training, audit, transfer ($5K).
- What is the Del Taco franchise profit margin?
- Del Taco does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Franchised restaurants: avg sales $1,613,899 (2024). Company-owned: avg sales $1,804,158, operating profit $383,324 before rent. Data from 387 franchised, 116 company-owned locations. No audited verification. Recurring fees alone take about 9% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Del Taco franchise failure rate?
- 9 ceased operations (2024), 0 terminations, 32 transfers suggest consolidation pressure.
- How many Del Taco locations are there?
- Del Taco's FDD reports 594 total outlets, with 9 that ceased operations in the most recent reporting year and 32 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Del Taco have complaints or lawsuits?
- Del Taco discloses 12 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Del Taco franchise worth it?
- It depends on the numbers, not the pitch. Del Taco scores C on disclosure honesty, carries about 9% of sales in ongoing fees, and discloses 12 legal matters. Get the real owner take-home before you sign.
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Source: MN CARDS 34079-202505-08 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with Del Taco or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.