In which states do the freestanding company-owned Del Taco restaurants included in Table 19-2 operate?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Presented below are the (i) average sales and (ii) average operating figures before rent and real estate taxes, for the freestanding company-owned Del Taco restaurants that had been operating for at least 12 months, as of the end of each of the 2020 to 2024 fiscal years. At the end of our most recent fiscal year ended September 29, 2024, we had a total of 133 company-owned restaurants. Of those, 124 constitute freestanding restaurants, and 116 of them have operated for more than one year. These freestanding company-owned Del Taco restaurants operate in California (105), Florida (1), and Oklahoma (10). A significant number of the freestanding company-owned Del Taco restaurants included in Table 19-2 and 19-2-A are located in geographic areas where the Del Taco brand is well known and established—for example, 105 of 116 (or 90.5%) company-owned restaurants included in Table 19-2 are located in California. Company-owned restaurants do not pay royalties but, like franchisees, do pay a marketing fee equal to 4% of net sales. Company-owned Del Taco restaurants offer and sell the same or substantially the same products and services as offered and sold by franchised Del Taco restaurants. Except as otherwise noted, in our experience, there are no material differences, whether from economies of scale or otherwise, in the costs or expenses incurred or paid by company-owned Del Taco restaurants as compared to franchised Del Taco restaurants.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 47–54)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the freestanding company-owned Del Taco restaurants included in Table 19-2 operate in three states: California, Florida, and Oklahoma. As of the end of the fiscal year September 29, 2024, 116 of the 133 company-owned restaurants had been operating for at least 12 months and were freestanding. Of these, the majority (105) were located in California, with 1 in Florida and 10 in Oklahoma.
This concentration of company-owned restaurants in specific states, particularly California, may reflect Del Taco's strategic focus on markets where the brand is already well-established. The document notes that 90.5% of the company-owned restaurants included in Table 19-2 are located in California, indicating a strong brand presence and potentially higher brand recognition in that state.
For a prospective franchisee, this information highlights the importance of location and market familiarity. While Del Taco franchises are available in other states, the financial performance data presented in the FDD may be more representative of operations in California, Florida, and Oklahoma due to the higher concentration of company-owned restaurants in those areas. A franchisee considering a location outside of these states should carefully evaluate the potential market differences and brand awareness in their target area.
It's also worth noting that company-owned restaurants, while not paying royalties, do pay a marketing fee equal to 4% of net sales, similar to franchisees. This suggests that the financial performance of company-owned restaurants can provide a useful benchmark for potential franchisee earnings, although individual results may vary based on factors such as location, management experience, and local market conditions.