Franchising FAQ’s

Here are some frequently asked questions about the franchising process.

Q. What is the initial franchise fee?
A. The fee is $15,000 for your first franchise and $7,500 for any additional approved franchises.

Q. What are the on-going fees paid to the franchisor?
A. Franchisees pay a weekly royalty fee of 8% of gross sales minus sales tax. Franchisees also pay a weekly advertising fee of up to 4.5% of gross sales minus sales tax, a portion of which may be temporarily waived.

Q. How much does it cost to open a TACO DEL MAR® restaurant?
A.TACO DEL MAR® franchisees run a simple operation. Individual costs vary depending on a number of factors. The numbers listed here (other than the franchise fee) are estimates and are also found in item 7 of the US Franchise Disclosure Document (FDD).

Investment costs

Initial Franchise Fee $15,000
Real Property $2,000 – $12,000
Training Expenses (including travel & lodging) $6,500 – $10,000
Architectural Fees $5,000 – $10,000
Leasehold Improvements $30,000 – $70,000
Furniture, Equipment, POS System, and Fixtures $68,000 – $180,000
Outside Signage $3,200 – $8,000
Insurance $1,000 – $5,000
Opening Inventory $4,500 – $6,000
Legal and Accounting $500 – $3,500
Grand Opening Advertising $5,000
Miscellaneous Expenses (business licenses, utility deposits, & small equipment) $4,000 – $8,000
Additional Funds for First Three Months of Operation $12,000 – $42,000
TOTAL $156,700 – $374,500
*Investment Costs per Item 7 of 2014 US FDD. Investment costs in Canada may be different.

Q. How much money will I make?
A. The Franchisor’s employees, salespeople, and Development Agents are not permitted to furnish any information concerning actual or potential sales or profits. Actual results vary from restaurant to restaurant so we cannot estimate the results of any particular franchise. Contact a TACO DEL MAR® restaurant franchisee to learn first hand why he/she decided to acquire a franchise.

Q. Will I receive training?
A. Absolutely! Training classes are held throughout the year in Lynnwood, WA.

Q. Who will build my restaurant?
A. You are responsible for hiring a contractor to build your restaurant(s). The Store Design team will provide detailed floor plans based on your submitted specifications. Your DA or Company Representative will able to assist you as well.

Q. Do I have to negotiate the lease for my location?
A. You submit a site location proposal to your DA or Company Representative for approval. When you get the go-ahead, a draft of the lease is sent to our leasing affiliates, TDM Leasing, LLC or TDM Leasing Canada, ULC, for review and ultimate negotiation. All leases are held by TDM Leasing, LLC or TDM Leasing Canada, ULC and you will sign a sub-lease with them.

Q. Do all locations have to be in strip centers?
A. No. In fact, non-traditional locations (those attached to, located within, or located on the
property of an existing business or facility) can be desirable, depending on whether there
are restrictions. Some examples of non-traditional sites include airports, convenience stores, hospitals or colleges and universities.

Q. Why do I have to order my food and supplies from your approved vendors?
A. We require all franchisees to order food and some small ware items from an approved
distributor to ensure that all TACO DEL MAR® restaurants have consistent food quality and food handling while allowing for increased savings.

Q. What is the term of the franchise agreement?
A. The initial term of the TDM franchise agreement is 20 years, with a 20-year renewal option.