Del Taco Franchise Cost 2026: $1.46M+, 5% Net, Markets

Del Taco’s April 13, 2026 FDD puts the cost of a traditional restaurant at $1,461,200 to $3,313,500, with a $35,000 franchise fee, a 5% royalty and 5% marketing fee on net sales; as of October 14, 2026, its franchising site says it is not taking applications for Southern California or international development.

The franchising site’s cost page still shows $1,497,200 to $3,321,000, the prior May 5, 2025 FDD range. It also lists 4% marketing, while Item 6 of the April 13, 2026 FDD lists 5%. The figures below use the 2026 FDD, with site statements identified separately.

Del Taco franchise cost from the April 13, 2026 FDD

The April 13, 2026 FDD is labeled by its issuance date, despite the PDF filename ending in 2025. Its cover separates these investments:

Format or agreement	Total investment	Amount included that is paid to franchisor or affiliates
Traditional restaurant	$1,461,200 to $3,313,500	$46,700 to $106,000
Development agreement, minimum two restaurants	$2,993,400 to $6,702,000	$45,000 for a two-store development agreement, credited toward franchise fees
Non-traditional restaurant	$856,000 to $2,543,000	$13,450 to $156,000
Conversion of a non-Del Taco restaurant	$971,200 to $2,763,500	$46,700 to $56,000

FDD provision	Disclosed terms
Item 5: initial fees	Standard franchise fee: $35,000; promotional fee: $10,000, both due at signing. Non-traditional franchise fee: $1,750 per year of the agreement term; other Item 5 fees remain the same.
Item 5: development fee	$35,000 for the first restaurant plus a $10,000 franchise-fee deposit for each subsequent restaurant. The deposits are credited; the remaining $25,000 franchise fee for each subsequent restaurant is paid as it opens. These fees are nonrefundable.
Item 6: royalty and marketing	Royalty: 5% of net sales. Marketing: 5% of net sales, subject to increase on notice to the then-current new-franchisee rate, which the FDD anticipates will not exceed 6%. Non-traditional marketing is typically 1.4% of net sales and may be modified.
Item 6 and incentive addenda	Royalties of 1%, 2%, 3% and 4% of net sales in operating years one through four, then 5% thereafter, subject to eligibility and compliance. The addenda’s differing coverage is detailed below.
Item 12: territory	No exclusive territory; a protected area within a one-mile radius of the restaurant’s front door is subject to reserved rights and excludes Alternative Points of Distribution. See Item 12 explained.
Item 17: term and renewal	Initial term: 20 years after opening. One additional term: the lesser of 20 years or the remaining premises lease term, subject to renewal conditions.
Item 20: fiscal year-end 2025	438 franchised and 132 company-owned restaurants, totaling 570.
Item 1: franchisor and affiliates	Del Taco LLC; direct parent Kerry Foods International, LLC. Restaurant-franchising affiliates named are NTG Franchising, LLC and Taco Cabana Franchising, Inc. The parent chain is detailed below.

Item 6 defines the base briefly: “Net sales include all revenue from the Restaurant, except for refunds and sales or similar taxes.” The franchise agreement’s Section 3.3.1 provides the fuller definition, including exclusion of coupon discounts and taxes collected from customers and actually transmitted to taxing authorities. Games and devices have a separate royalty provision.

Item 5 also estimates pre-opening support expense reimbursement at $1,700 to $3,500. Conditional charges include a $4,500 to $7,500 trade-area survey plus expenses and site-development services up to $50,000 plus out-of-pocket and internal overhead costs. The Item 7 guide explains how to read the full investment table alongside initial fees.

Renewal under Item 17 requires no default, at least 12 months’ notice, satisfaction of monetary obligations, a new agreement, a general release, and renewal and promotional fees; remodeling and additional training may also be required.

Jack in the Box completed the sale of Del Taco Holdings Inc. to Del Taco Group, LLC, an assignee of franchisee Yadav Enterprises, Inc., on December 22, 2025, according to its Form 8-K. Item 1 of the April 13, 2026 FDD identifies Del Taco LLC as franchisor and gives the parent chain as Kerry Foods International, LLC; Sagittarius Restaurants Holdings Co., Inc.; F&C Restaurant Holdings Co, Inc.; Del Taco Holdings, Inc.; Del Taco Group, LLC; and Del Taco Holdings, LLC. It names NTG Franchising, LLC and Taco Cabana Franchising, Inc. as restaurant-franchising affiliates. Minnesota’s CARDS registry, Del Taco file 10717, shows an Order of Cancellation dated June 29, 2026, citing failure to file an annual report and fee. Minnesota buyers should ask about registration status.

Southern California is closed

As of October 14, 2026, Del Taco’s available-markets page states that it is not taking applications for Southern California or international development. Check the specific market before budgeting for a location; the FDD’s protected-area provision does not establish that a market is available.

The royalty is on net sales

The April 13, 2026 FDD’s Item 6 states a 5% royalty on net sales, and the incentive addenda also use net sales. One answer on the franchising site’s FAQ instead describes the incentive using “Gross Sales”. That wording differs from the FDD’s fee basis.

The defined revenue base matters alongside the percentage. The royalty fee explainer explains that comparison; the Item 6 guide covers ongoing fees and their calculation terms.

The multi-unit royalty ramp is real money

Item 6 and both Development Incentive Program addenda state the same royalty schedule: 1% of net sales in the first operating year, 2% in the second, 3% in the third, 4% in the fourth and 5% in all subsequent years. The reduction lasts four operating years. These provisions state no calendar enrollment deadline.

Eligibility is more specific than a blanket three-location offer. Item 6 limits the program to qualifying multi-unit development in markets Del Taco identifies as undeveloped, underdeveloped or emerging; mature markets are excluded. The development-agreement addendum describes three or more restaurants in an undeveloped or emerging market and applies the ramp to each franchise agreement executed under that development agreement. The franchise-agreement addendum instead describes at least five restaurants and applies the ramp to the first two restaurants opened. Those provisions differ, so the signed addenda need to identify the qualifying restaurants and applicable terms.

Both addenda require full compliance with the agreements and the development schedule. A breach requires immediate repayment of reductions in initial franchise fees or royalties. The benefit cannot be transferred. A missed development schedule therefore affects more than the opening date.

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What that means for a single-unit buyer

Del Taco’s FAQ says it prefers multi-unit agreements but may consider one or two unit agreements in some circumstances. It also requires at least one person with recent multi-unit restaurant operations experience on the ownership team. The smaller-agreement answer does not state an exception to that requirement.

The franchising site’s cost page lists minimum liquidity of $500,000+ and minimum net worth of $1 million+, checked October 14, 2026. These are applicant qualifications, separate from the FDD’s investment ranges.

For other restaurant franchise comparisons, see Qdoba, Freddy’s, Church’s Chicken and Wings Etc.

Restaurant count and financing eligibility

Item 20’s systemwide outlet table reports 438 franchised restaurants and 132 company-owned restaurants at fiscal year-end 2025, for 570 total. Item 1 separately states 444 franchised restaurants; the count here follows Item 20’s dedicated outlet table.

SBA Franchise Directory: Del Taco appears in the SBA’s Franchise Directory file effective October 9, 2026 (SBA Franchise Identifier Code S0493; franchisor certification marked received). A listing is what a lender checks for brand eligibility; it is not an endorsement, and your own eligibility as a borrower is assessed separately. See how to check the SBA Franchise Directory. The file notes a lease addendum condition when real estate secures the loan.

Questions to ask Del Taco before you sign

• Is the specific market accepting applications, given the site’s Southern California and international development exclusions?
• Which disclosed format applies to the proposed location, and which Item 7 costs depend on the site?
• Does the proposed agreement use the 2026 FDD’s 5% marketing fee, rather than the site’s 4% figure?
• How does the agreement’s net-sales definition apply to refunds, coupon discounts, taxes and other revenue at this location?
• Which incentive addendum applies, which restaurants receive the ramp, and how are the differing restaurant-count provisions resolved in the signed documents?
• What schedule obligations and repayment provisions apply if development slips?
• What counts as recent multi-unit operating experience for a one or two unit agreement?
• For a Minnesota location, what is the current registration status following the June 29, 2026 cancellation order?
• Will a franchise attorney and an accountant review the full FDD and agreements before signing?