When purchasing an existing company-owned Del Taco restaurant, what factors determine the cost?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
856,000 to $2,543,000.
Sale of Company-owned Restaurants. Occasionally, we may sell one or more existing company-owned Restaurants to a franchisee. If you purchase an existing company-owned Restaurant from us or our affiliate, your cost will depend on a variety of factors, including (without limitation) the sales history and trend of the Restaurant, the assets being purchased, and the nature of the Restaurant's trade area. Generally, your cost (excluding the cost to purchase or lease the Restaurant's real estate) should not exceed the range of
total costs for the development of a new Restaurant as described above. The total purchase price is expected to range from $50,000 to $1,800,000.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–28)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the cost of purchasing an existing company-owned Del Taco restaurant depends on several factors. These include the restaurant's sales history and trends, the assets being purchased as part of the transaction, and the characteristics of the restaurant's trade area. The document indicates that the cost, excluding real estate, generally should not exceed the total costs associated with developing a new Del Taco restaurant.
The FDD states that the total purchase price for an existing company-owned restaurant is expected to range from $50,000 to $1,800,000. This wide range reflects the variability in the factors mentioned above, such as sales performance and asset value.
Prospective franchisees should carefully evaluate these factors and conduct thorough due diligence before committing to purchase an existing Del Taco restaurant. Understanding the sales trends, the condition and value of the assets, and the dynamics of the trade area is crucial for making an informed investment decision. Consulting with financial and legal advisors is also recommended to assess the financial viability and legal implications of the purchase.