Opening a Del Taco Franchise
Del Taco specializes in serving great Mexican fast food cuisine which is of the best quality but of the cheapest price.
The Del Taco franchise has remained one of the top fast food franchises in the country.
Each major city in the country is known to have at least one Del Taco restaurant. The Del Taco restaurant serves a variety of Mexican foods which include nachos, tacos, burritos and even some American food such as French fries and hamburgers.
To apply for the Del Taco franchise opportunity you will need to complete the confidential online inquiry on their company website. After submission you may be contacted by the franchise coordinator to verify certain aspects of your inquiry. The Regional Franchise Recruiting director will contact you either through email or phone to discuss further information and answer all your queries with regards to the company and its application process. Once you qualify on this preliminary basis you will be required to fill in the Formal Franchise Application on the website. You will be briefed on the procedure and because of the convenience the electronic application provides, will be expected to accomplish it all in a timely manner. At this stage you will only be required to submit the two part of the 3 part application, these include the general information part and management commitment sections. You will then have to await approval before continuing to the financial application section. This is where you may discuss certain aspects of financial aid if you wish to start the business but do not have the initial funds necessary to partake in the franchise requirements. It is after application to financial requirements and its corresponding approval that you may now begin starting up your Del Taco franchise business. The financing however is not directly supplied by Del Taco, rather from third party lending institutions.
First you must consider the site selection of your establishment. The standard size of the restaurant is roughly 2,260 square feet of building space with 23 outdoor parking spaces with drive thru. The investment size that follows your restaurant establishment ranges between $1 million to $1.5 million per restaurant excluding land. These however vary accordingly depending on regional costs and differences. The Royalty rate is at 5% of net sales weekly. The Franchise fee is $25,000 with $10,000 for every additional restaurant and the balance of $15,000 is paid per each subsequent restaurant. Each new restaurant is required to contribute the amount of $6,000 before the grand opening. The marketing fund is 4% of the weekly net sales from which the franchisee will acquire media and local marketing support with brand marketing and delivery of marketing displays.
Training for the Del Taco restaurant takes place at the Del Taco Training Department. In the case of financial investors it is necessary for at least one of the members to be fully trained along with the operating partner. It is required that there are a number of certified management and shift leaders per location. Training is a 5 week process at both the headquarters and corporate units.
To start a Del Taco franchise you will initially need an investment franchise feel of $50,000 with a 5% royalty fee and a term of agreement that is renewable in 20 years. The renewal fee is around $25,000 and there is no advertising fee required from the company. Support offered is through newsletters, meetings, aid during grand openings, security and safety procedures, field operations and evaluation. Marketing assistance is in the form of ad slicks and regional advertising. Franchisees are usually required to purchase multiple units and master licenses, and 40% of all franchisees own more than one unit. The minimum number of employees required to run one franchised unit is 50 and absentee ownership of franchise is not allowed, 35% of the current franchisees are owners and operators. Qualifications necessary for application to the franchise opportunity include business industry experience and general business experience.
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