Taco Del Mar Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Taco Del Mar is a fast-casual franchise serving coastal Mexican tacos, burritos, and bowls with a surf theme. Franchisees run the restaurants, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Taco Del Mar franchise requires a total initial investment of $206K – $596K, including a $5K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 41.7% charge-off rate across 99 loans[1]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $206K – $596K
- 26th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 40
- 62nd pct Service Resta…
- SBA charge-off
- 41.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $206K – $596K including a $5K franchise fee, 6.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict D (Below average), verdict score 31/100 (higher is better). SBA loan charge-off rate of 41.7% across 99 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DECLINESystem contracting at -7.0% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- TDMF Holdings, LLC
- Parent company
- REGO Restaurant Holdings II, LLC
- Ultimate parent
- High Bluff Capital Partners, LLC
- Predecessor
- TDM Franchising, LLC (renamed Old TDM, LLC)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Neel Mahendra Patel
- Incorporated in
- Delaware
- HQ
- 4700 S. Syracuse St., Suite 225, Denver, Colorado 80237
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.6M
- vs $1.4M prior year
Overview
About
- CEO
- Neel Mahendra Patel
- Headquarters
- CO
- FDD year
- 2025
- States available
- 7
Can you afford it, and what does the money buy?
Entry cost runs 39% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $5K | $5K |
| Working capital (3–6 mo) | $35K | $40K |
| Equipment, build-out, other | $166K | $551K |
| Total initial investment | $206K | $596K |
Source: Taco Del Mar 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $206K – $596K
- Top 40% of category vs category
- Liquid capital req'd
- $35K – $40K
- Bottom third — review vs category
- Franchise fee
- $5K – $5K
- Top 40% of category vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $230 |
| Transfer fee | $5K |
| Renewal fee | $3K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Taco Del Mar did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Taco Del Mar unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
24%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -7.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Taco Del Mar Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 40
- Opened
- 1
- Last reporting year
- Closed
- 7
- Turnover rate
- 17.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -7.0%
- Net unit change over 3 years
- 3-yr CAGR
- -7.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 7
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 7 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
7
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 99
- Loan volume
- $15.2M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 41.7%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 58.3%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 34
- Defaults
- 35
- Typical loan rate
- 5.9%
- avg rate to borrowers
- Franchised industry avg
- 21.5%
- brand above franchise avg ↑
- Jobs supported
- 839
- 6.4 per loan
- Lender concentration
- 15%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 21.5% vs 25.0% for independents — franchising is associated with 14% lower SBA default risk in this category.
Vintage analysis
Taco Del Mar charge-off rate by loan vintage
Top lenders financing Taco Del Mar franchisees
Showing 3 of 34 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Taco Del Mar's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 17-year lending trend
Instant access. No subscription.
A 41.7% charge-off rate means roughly 1 in 2 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 41.7% — 160% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Audited, no litigation or bankruptcy, but net income was negative at -$34,561 on revenue of $1.37M and no Item 19 disclosure. Unit count declined 7% (40 franchised units) with a 17.5% turnover rate. Positive net worth of $372,351 tempers the concern.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 31 / 100 verdict
- 01MINORNegative net income -$34,561
- 02MINORNo Item 19 disclosure
- 03MEDUnit decline -7%, turnover 17.5%
- 04MINORPositive net worth $372,351, no litigation/bankruptcy
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 37 hrs
- On-the-job training
- 46 hrs
- Training location
- On-site and corporate
- POS system
- Revel POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel POS
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Taco Del Mar · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Taco Del Mar franchise?
The total investment to open a Taco Del Mar franchise ranges from $206K – $596K, with an initial franchise fee of $5K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Taco Del Mar franchise owners earn?
Taco Del Mar does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Taco Del Mar FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Taco Del Mar FDD and qualifies whose outlets they describe.
What is Taco Del Mar's franchise failure rate?
Based on SBA 7(a) loan data, Taco Del Mar has a charge-off rate of 41.7% across 99 loans, meaning 41.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Taco Del Mar franchise locations are there?
As of their most recent FDD filing, Taco Del Mar has 40 total units in the United States, including 40 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Taco Del Mar a good franchise to buy?
FranchiseVerdict rates Taco Del Mar as a D-grade franchise with a verdict score of 31 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Taco Del Mar, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.