Here's How Much It Really Costs To Open A Del Taco Franchise
Americans sure do love Mexican food. From tacos to tostadas to burritos, Mexican cuisine brings an unmatched level of happiness to the hearts, tummies, and minds of many. And if you're a business owner looking to bring smiles to the lives of many, opening a Del Taco franchise could be a possibility for you. Like many other chains, Del Taco offers the opportunity to journey down the path of becoming a franchisee. But it comes at a cost.
Unlike Chick-fil-A, opening a Del Taco will require a bit of capital on behalf of the potential franchisee to get things rolling perfectly like a burrito. Franchise Chatter reveals that there are about 16 different fees (not all start-up fees) that someone looking to franchise a Del Taco should be aware of. Del Taco also requires potential applicants to have an operating partner if they have no prior experience (via Del Taco).
So, how much do you really need to open a Del Taco location?
Del Taco's initial franchise fee is an easy, breezy $35,000 as well as a cool $500,000 in liquid assets and a $1 million net worth (via Del Taco). Del Taco may have delicious tacos, but owning one will definitely cost you a pretty penny. Franchise Chatter also adds to that bill and calculates things like pre-opening support (between $1,700 and $3,500), the promotional fee ($10,000), marketing (4 percent of net sales), royalty fees (5 percent of net sales), and a few other fees that can quickly ratchet up the total price of opening up a Del Taco franchise. But what happens when you want to skip the start-up costs and buy out a company-owned location?
Franchise Chatter states that it could cost you between $50,000 and $2 million depending on things like the worth of the restaurant's general equipment, Del Taco signage, the restaurant's overall cash flow, and location (along with any other real estate components). Of course, you still have to dish out the franchise fee if you decide to go this route. The above mentioned are just the fixed costs of owning a Del Taco, there are also other fees like successor fees and audit fees that are paid out as incurred. Much is needed to start up a Del Taco, but can you really put a price on happiness and the ability to be your own boss?