About Taco Del Mar Franchise
Taco Del Mar is a quick service and fast casual restaurant franchise specializing in Mexican style food including tacos, quesadillas, burritos, nachos, and salads.
Franchising since 2019 under REGO Restaurant Holdings II, LLC, the brand offers multiple format options including standalone modular structures, traditional in line restaurant spaces, and food trucks.
The initial franchise fee is $10,000, making it one of the most affordable entry points in the Mexican food franchise category.
Taco Del Mar Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $10,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently 2% of Gross Sales | National brand fund |
| Total Investment Range | $388,100 – $782,000 | Includes build-out, inventory, working capital |
The investment range of $388K–$782K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (Currently 2% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $10,000 | $10,000 |
| Real Estate | $0 | $0 |
| Site Work | $50,000 | $150,000 |
| Architectural and Building | $150,000 | $350,000 |
| Freight, Installation and Cranes | $35,000 | $50,000 |
| Restaurant Equipment, Fixtures and Signs | $75,000 | $120,000 |
| Uniforms | $0 | $500 |
| Computer Systems, Online Ordering, Telephones, Point-of-Sale and Delivery Equipment | $3,000 | $9,000 |
| Security Deposits, Utility Deposits, Permits and Business Licenses | $3,600 | $8,000 |
| Training Expenses | $2,500 | $4,500 |
| Grand Opening Advertising | $5,000 | $15,000 |
| Opening Inventory and Supplies | $9,000 | $15,000 |
| Additional Funds (3 months) | $35,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | $2,500 (Successor Fee) |
| Technology Fee | Currently ranges from $190 to $300 (plus applicable taxes) per terminal (POS Systems Fee) |
| Audit Fee | (1) Interest on past due amount at lesser of 2% per month or maximum commercial contract interest rate allowed by law and (2) costs of audit |
| Music Fee | Currently ranges from $40 to $50 (plus applicable taxes) per month |
| Gift Card Service Charge | 3% - 15% of Gross Sales from gift card purchase, plus pro rata share of third-party vendor commission, if applicable |
| Training Program Expenses | Costs associated with attending mandatory training session |
| Interest on Late Payments | 2% interest per month on any late payment to us, including Royalty and Marketing Fee payments |
| Marketing Materials | Varies. Currently, at our cost. |
| Testing | Not currently charged, but if implemented it will be the actual cost of testing |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Management Fee | 3% of Gross Sales plus direct out-of-pocket costs and expenses |
| Default Fee | $250 per occurrence and per week |
| Termination Fee | An amount equal to the net present value of the Royalties and Marketing Fees that would have become due following termination of the Franchise Agreement for the period the Franchise Agreement would have remained in effect but for your default |
| Online Ordering Equipment Fee | $50.00 per month, plus an activation fee of $250. The equipment purchase price is between $125 - $350. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 15 to 20 days (for Designated Managers) |
| Classroom Training | 34-60 hours |
| On-the-Job Training | 83-114 hours |
| Training Location | In a training TACO DEL MAR Restaurant operated by us or an affiliate, at our offices in Denver, Colorado, virtually, or any other designated location. |
| Additional Training | We may occasionally require additional training based on need and demonstration of ability, for which a training fee of $255 per day (including educational technology fee) may be charged. Additional training may also be required if performance standards are not met. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive or protected territory |
| Exclusive Territory | Yes |
| Territory Size | A minimum of a 2-mile radius surrounding the Franchised Location. |
| Description | You will receive an exclusive or protected territory. However, you may face competition from other franchisees, company-owned units, or other channels of distribution or competitive brands that we control, regardless of proximity. The franchised location is a specific site identified in the Franchise Agreement, with a minimum territory size of a 2-mile radius. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years or coterminous with the Lease, not to exceed 10 years |
| Renewal Term | Additional 10-year term |
| Renewal Fee | $2,500 |
| Renewal Conditions | Execute a Successor Franchise Agreement (which may have materially different terms), pay a successor fee, execute a general release, complete new training, make capital expenditures for remodeling to comply with current Operations Manual, and provide 180 days' written notice before expiration. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Full compliance with the Franchise Agreement, all amounts paid, all reports submitted, no breach within 60 days prior to request, transferee signs current franchise agreement, passes English competency and other tests, completes Initial Training Program, provides information for evaluation, no ownership in competitive business, agrees to renovate/refurbish, landlord consents to assignment, financing not exceeding maximum debt limits, executes non-disparagement and general release, abides by post-termination covenants, obtains written consent for possession, and pays transfer fee. |
| Termination for Cause | 30 days or shorter period for curable defaults; immediate termination for non-curable defaults unless precluded by applicable law. |
| Non-Compete Period | During the term of the franchise; two years after termination or expiration. |
| Non-Compete Details | During the term: No direct or indirect interest in a Competitive Business, no performance of services, no diversion of business related to TACO DEL MAR Restaurant. After termination/expiration: No interest in competitive business at former Franchised Location or within five miles of former Franchised Location or any other TACO DEL MAR Restaurant for two years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You (or your managing owner/Designated Operating Partner) or your Designated Manager must devote full-time and best efforts to manage and operate the TACO DEL MAR Restaurant. The Designated Manager must manage daily operations on a full-time basis. All must successfully complete the Initial Training Program and demonstrate basic math and English language communication skills. |
| Required Suppliers | You are required to use only approved and/or designated vendors (which may be us or our affiliates) for certain goods and services and to enroll in certain mandatory service programs. You must purchase the Cube from our required vendor, BCubed Manufacturing, LLC, as there are no other vendors available for its manufacturing. |
| Supply Restrictions | If you desire to purchase equipment, products, services, supplies, or materials from suppliers other than those previously approved, you must submit a written variance request. Approval or rejection will be provided within a reasonable time (typically no longer than 30 business days) after investigation. Approval may be withheld for any reason, and samples of new products may be required for testing. |
| Franchisor Revenue from Suppliers | For beverage products, fees generally range from $6.13 to $8.25 per gallon. For food products, fees usually range from less than $1 to $20 per case or from less than $1 to $4.60 per pound. A fee ranging approximately from $0.01 to $0.03 per transaction is received from the credit card processing vendor. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Taco Del Mar Franchise Earnings — Item 19
Taco Del Mar does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Taco Del Mar Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Taco Del Mar System Growth
Taco Del Mar currently operates 48 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 11 | 64 |
| 2020 | 0 | 15 | 49 |
| 2021 | 0 | 1 | 48 |
Transfers: 5 | Closures: 19
State Registrations
Registered in 30 states: CA, CT, FL, GA, HI, IL, IN, IA, KY, LA, ME, MD, MI, MN, NE, NH, NY, NC, ND, OH, OK, OR, RI, SC, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Grant Thornton LLP for year ending December 26, 2021.
Taco Del Mar Franchise — FAQ
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