FranchiseVerdict
Taco Del Mar logo
FV-02539·MODERATEExcellent81

Taco Del Mar

Food & Beverage - Quick ServiceFranchising since 2019Website
Investment
$206K – $596K
35th pct Quick Service
Avg revenue
60th pct Quick Service
Royalty
6.0%
46th pct Quick Service
Units
40
54th pct Quick Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $206K – $596K including a $5K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 99 loans (below the industry average).
  • System 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

Legal entity
TDMF Holdings, LLC
Parent company
REGO Restaurant Holdings II, LLC
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

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Taco Del Mar unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: qsr
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $206K–$596K
Working capital
$
FDD reports $35K–$40K

Unlevered ROIC · per unit

24%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$105K
EBITDA margin
14.0%
Total invested
$438K
Payback
50 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate fast-casual Mexican restaurants serving burritos, tacos, and bowls with customizable ingredients. Day-to-day responsibilities include food preparation, kitchen management, front-of-house service, inventory control, staffing, and customer service—typical for QSR concepts with moderate labor intensity.

CEO
Neel Mahendra Patel
Founded
2019
FDD year
2025
States available
7

Item 7 · what it costs

The Vitals

Total investment
$206K – $596K
All-in to open one unit
Liquid capital
$35K – $40K
Cash you must have on hand
Franchise fee
$5K
Royalty
6.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

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 (yr3)
-13.0%
Net unit change last year
3-yr CAGR
-7.0%
Compounded over last 3 years
2023
40-6
Franchised units
2024
46
Franchised units
2025
43
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 31 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 31 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
99
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

62
Risk · 0-100
MODERATE62 / 100

Taco Del Mar presents HIGH RISK due to severe unit contraction (13% YoY decline), absence of financial disclosure (no Item 19), undisclosed profitability metrics, and missing going concern affirmation—indicating a potentially distressed franchise system with unclear unit economics.

Score breakdown · what drove the 62 / 100 rating

  1. 01MINORSystem declining rapidly: 40 units with 13% YoY contraction signals franchise model distress
  2. 02MINORNo Item 19 financial disclosure: Cannot validate revenue/profitability claims, making ROI completely opaque
  3. 03MINORHigh investment-to-unit ratio: $205k-$596k for a system with only 40 remaining locations raises sustainability questions
  4. 04HIGHGoing concern indicator absent: Franchisor does not affirm financial stability, suggesting possible liquidity or solvency stress
  5. 05MINORMinimal franchise fee ($5,000) may indicate low barrier to entry that didn't prevent attrition, or desperation to recruit

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Colorado

Item 11

Training & Operations

Classroom training
37 hrs
On-the-job training
46 hrs
POS system
Revel POS
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

36 numbers

Locked
(403) 448-••••
(801) 530-••••
UT
(801) 530-••••
UT

One-time purchase · CSV download · Validation questions included

FDD download

Taco Del Mar · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above