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Below is an in-depth analysis and side-by-side comparison of Del Taco vs Taco Palace including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $859,700 - $2,116,500 | $53,200 - $133,100 |
Franchise Fee | $35,000 | $33,950 |
Royalty Fee | 5% | 0-4% |
Advertising Fee | 4% | - |
Year Founded | 1964 | 1985 |
Year Franchised | 1967 | 1996 |
Term Of Agreement | 20 years | 1 year+ |
Term Of Agreement | 20 years | 1 year+ |
Renewal Fee | $25K | - |
Business Experience Requirements |
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Experience | Del Taco is seeking passionate candidates who are committed to outstanding customer service to join us as we rapidly expand across the country. Our ideal franchisee is an experienced restaurant operator or an investor who will partner with an experienced operator and is committed to developing at least two restaurants over time. | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/No |
Start-up Costs | No/Yes | No/No |
Equipment | No/Yes | No/No |
Inventory | No/Yes | No/No |
Receivables | No/Yes | No/No |
Payroll | No/Yes | No/No |
Training & Support |
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Training | Our leadership team, brand legacy and proven business model offer our franchisees the personal support, systems and resources needed to help establish manage and grow their business. From referring financing sources, site selection assistance and construction oversight to extensive hands-on management and crew training, new store opening support and robust marketing materials, our assistance doesn’t end when you open your doors. On-The-Job Training: 400 hours Classroom Training: 40 hours Additional Training: At training store | - |
Support | Our professional and experienced support team provides: Ongoing management/crew training and manuals State-of-the-art POS systems to help franchisees track business indicators 24-hour technical support help desk and customer comment line Local store marketing toolbox, including community-based programs Effective advertising materials and market research Assistance from a dedicated Franchise Business Consultant and Franchise Marketing Manager Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform | Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Co-op Advertising Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Ad slicks |
Operations |
Franchisees required to buy multiple units/master licenses; 40% of all franchisees own more than one unit Number of employees needed to run franchised unit: 50 Absentee ownership of franchise is NOT allowed. (35% of current franchisees are owner/operators) |
0% of all franchisees own more than one unit Number of employees needed to run franchised unit: 12 Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | No | - |
Canada Expansion | No | No |
International Expansion | No | Yes |
Ed Hackbarth opened the first Del Taco restaurant in Barstow, California, in 1964. A few months later, he added a second restaurant with a drive-thru window in Corona, California. Locations eventually spread across California and many parts of the United States. Del Taco restaurants offer items including a value menu of tacos, burritos and nachos priced under $1, a Macho menu of large burritos, nachos and drinks, and an American menu featuring hamburgers, French Fries and shakes.
Husband-and-wife team Larry and Sandi Faria bought Taco Palace from Kirk Davison in 1985. The Farias had previously owned a pair of Chevron Oil Co. franchises and brought to Taco Palace 16 years of franchise experience. In developing Taco Palace's franchise program, the Farias were driven by the goal to develop a franchisee-friendly system. Taco Palace franchisees are not required to pay a franchise fee and are strongly encouraged to rent or lease an existing building and then dress it up, rather than construct a new one, a practice that helps to lessen start-up costs. The privately held company is headquartered in Monett, Missouri, and has a co-branding relationship with Kentucky Fried Chicken.