Taco Del Mar Franchise Cost, Revenue & Review 2026
- Investment
- $206K – $596K
- Disclosed sales
- not disclosed
- SBA charge-off
- 41.7%
- on 99 loans
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. 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 →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $206K – $596K
- 24th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 48th 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 median · 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.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- 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).
- GROWTHNegative: net -6 franchised outlets in the latest year (1 opened, 7 closed); 1 signed but not yet open (Item 20).
- 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
- $1.4M
- vs $1.6M prior year
Same owner · FDD Item 1
2 other brands on this site name High Bluff Capital Partners, LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 17% 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%
- 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 |
| Inventory (initial) | $3K – $15K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Taco Del Mar makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Taco Del Mar unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Taco Del Mar Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 1
- 0.03 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
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)
Where the owners are · Item 20 owner list
3 current owners across 2 states.
- GA 2
- CO 1
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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%
- on 99 loans · 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Taco Del Mar from SBA 7(a) FOIA data.
- Principal loss rate
- 28.1%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 5.91%
- Avg chargeoff amount
- $106K
- Lender concentration
- 15.3%
- Job velocity
- 6.4 per $100K
- NAICS benchmark
- 15.7%
- NAICS 722211
- Jobs supported
- 839
Top SBA lendersTop lender holds 15% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 13 | $1.4M | 46.2% |
| 2 | Heritage Bank | 12 | $1.9M | 16.7% |
| 3 | Zions Bank, A Division of | 12 | $2.0M | 50.0% |
| 4 | Columbia Bank | 10 | $1.9M | 20.0% |
| 5 | Readycap Lending, LLC | 4 | $740K | 100.0% |
| 6 | Banner Bank | 3 | $402K | 66.7% |
| 7 | BNC National Bank | 3 | $391K | 0.0% |
| 8 | Bank of America, National Association | 2 | $83K | 50.0% |
| 9 | Community West Bank | 2 | $288K | 50.0% |
| 10 | Trustmark Bank | 2 | $174K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| WAWashington | 27 | 8 | 29.6% |
| CACalifornia | 14 | 11 | 78.6% |
| OROregon | 13 | 2 | 15.4% |
| UTUtah | 8 | 3 | 37.5% |
| AZArizona | 5 | 3 | 60.0% |
| NDNorth Dakota | 3 | 0 | 0.0% |
| HIHawaii | 2 | 1 | 50.0% |
| IDIdaho | 2 | 2 | 100.0% |
| MSMississippi | 2 | 0 | 0.0% |
| MTMontana | 2 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
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 | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| 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 |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Denver, Colorado (within 50 miles of franchisor's principal place of business) |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 37 hrs
- On-the-job training
- 46 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Not offered
- Item 10
- 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Taco Del Mar?
Taco Del Mar is franchised by TDMF Holdings, LLC. Its parent company is REGO Restaurant Holdings II, LLC. The ultimate parent named in the FDD is High Bluff Capital Partners, LLC. Source: FDD Item 1, 2025 filing.
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). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.