Del Taco

Item 7 outlines a hefty entry: $35,000 franchise fee plus $1,497,200-$3,321,000 total investment for standalone or end-cap builds, covering buildout, equipment, and inventory in high-traffic spots. Ongoing hits include 5% royalty on gross sales, 4% brand/ad fund, and $236-$347 monthly fixed fees for tech, payroll, training, and digital tools. Item 19 delivers solid top-line: average gross revenue $1,613,899, median $1,541,335 across reporting units—strong for fast-casual tacos and burgers, implying potential 20-25% EBITDA margins if costs align with benchmarks, though no profit data disclosed. SBA records show 27 loans averaging $1,287,763, signaling banks back mid-sized deals but watch default risks.

Franchising since 1990, the system ballooned from 421 to 461 locations in 2024 (+10% growth), yet franchise-specific units linger at just 9 amid 14 terminations and 18 transfers—red flags for operator retention versus corporate dominance. Projected new units: only 4, hinting cautious expansion. Bankruptcy history yes, plus parent Jack in the Box's influence post-acquisition questions pure franchise momentum. High transfers suggest resale churn; for multi-unit aspirants, this trajectory means proven brand lift but steep barriers and turnover risks eating into that $1.6M revenue promise.