Does the estimated initial investment for a Del Taco restaurant include advertising or royalty payments?

According to Del Taco's 2025 Franchise Disclosure Document, the estimated initial investment for a new restaurant does not include advertising or royalty payments. The FDD clarifies that the estimated operating expenses for the first three months of business do not include these costs. These estimates are based on Del Taco's experience operating restaurants, mainly in the western United States, as well as the experiences of their franchisees.

This means that prospective Del Taco franchisees should budget separately for ongoing advertising and royalty fees, as these are not factored into the initial investment estimate. The initial investment covers expenses such as payroll, taxes, food, paper, supplies, utilities, licenses, permits, bank charges, repair and maintenance, and insurance. It is important for potential franchisees to consider these additional costs when evaluating the financial feasibility of opening a Del Taco franchise.

The FDD also notes that a franchisee's actual costs may vary depending on factors such as the size of their restaurant, their adherence to Del Taco's methods and procedures, their management skills, financing costs, local economic conditions, the local restaurant market, prevailing wage rates, competition, and sales levels during the initial period. Therefore, it is crucial for prospective franchisees to conduct thorough market research and develop a detailed business plan to accurately estimate their potential expenses and revenue.

In summary, while the initial investment provides a baseline for starting a Del Taco franchise, franchisees must account for additional operating expenses like advertising and royalties to ensure they have a comprehensive understanding of the total financial commitment.