Business Description

Mexican-American fast-food restaurant. Second largest Mexican brand in U. S. sales.

Franchisor Background

Year Established:  1964

Franchising Since:  1967

Operating Units:
Franchised Units:	221	43.7%
Company-Owned Units:	285	56.3%
Total Operating Units:	506	100.0%
Minority Representation Units Owned by Minorities: African-American: 1 Asian-American: 5 Hispanic: 8 Native American: 0 Other: 0 Specific Minority   Program(s) in place: Although we strongly support the objectives of the NMFI, we do not yet have any specific programs in place at this time.
Geographic Distribution: U.S.: 506 100% In 13 States Canada: 0 0% In 0 Canadian Provinces International: 0 0% In 0 Foreign Countries   Total: 506 100.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. Arizona	47
2. California	355
3. Nevada	35

Registered in Following Registration States: California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia, Alberta

Financial Requirements

Investment:
Minimum Net Worth:	$750K
Cash Investment:	$300K
Total Investment:	$1MM
Average Total Investment:	$529K
Fees:
Initial Franchise Fee:	$25K
Average Franchise Fee:	$25K
On-Going Royalty:	5%
Average Royalty:	5%
Advertising Fee:	4%

Average Number of Employees: 2 Full-time, 24 Part-time

Space Needs (in square footage): 2,100

Preferred Sites: Free-standing Building

Other Sites:

Encourage Conversions? No

Earnings Claims Provided?: Yes

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	5
General Business Experience:	3
Specific Industry Experience:	5
Formal Education:	2
Psychological Profile:	3
Personal Interview(s):	5
Terms of Contract
Term of Initial Contract:	20 Year(s)
Term of Renewal Period:	15 Year(s)
Passive Ownership:	Allowed
Area Development Agreements?	Yes, for 1 Year(s)
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	Yes
Support and Training
International Franchise Association:	Yes
Canadian Franchise Association:	No
Franchisee Association/Member:	No
Size of Corporate Staff:	110
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	No
Financial Assistance?	No
Marketing Support:
Co-Op Advertising:	No
National Advertising:	No
Regional Advertising:	No
Local Advertising:	Yes
Marketing Materials:	None Specified
Additional Services:	None Specified
Other Marketing Support:	None Specified
On-Going Support:
Central Data Processing:	Not Applicable
Central Purchasing:	Not Applicable
Field Operation Evaluation:	Included in Fees
Field Training:	Not Applicable
Initial Store Opening:	Included in Fees
Inventory Control:	Not Applicable
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	Included in Fees
800 Telephone Hotline:	Not Applicable
Training:
1. Certified Training Restaurant	4 Weeks
2. Corporate Headquarters	1 Week
Expansion Plans
Projected New Units Over Next 12 months: 28 U.S.: Yes Canada: No Overseas: No	Request Franchisor Info   Submit an online form to receive information from Del Taco.