Taco Del MarFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $206K – $596K
- 33rd pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 40
- 60th pct Service Resta…
- SBA default
- 41.7%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
41.7% of SBA loans charged off across 99 loans, above the 16% franchise average.
Franchised units fell from 46 to 40 over 3 years. Investigate why operators are leaving.
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.
- Verdict F (Bottom Quintile) with a risk score of 81/100. 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, 2010–2024).
- 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
- DE
- 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
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
- Headquarters
- CO
- Founded
- 2019
- FDD year
- 2025
- States available
- 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
- Better than avg vs category
- Liquid capital req'd
- $35K – $40K
- Below avg, review vs category
- Franchise fee
- $5K
- Better than avg 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 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Taco Del Mar Compares
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 (yr3)
- -13.0%
- Net unit change last year
- 3-yr CAGR
- -7.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 4
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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
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
Vintage analysis
Taco Del Mar charge-off rate by loan vintage
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
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 81 / 100 rating
- 01MINORSystem declining rapidly: 40 units with 13% YoY contraction signals franchise model distress
- 02MINORNo Item 19 financial disclosure: Cannot validate revenue/profitability claims, making ROI completely opaque
- 03MINORHigh investment-to-unit ratio: $205k-$596k for a system with only 40 remaining locations raises sustainability questions
- 04HIGHGoing concern indicator absent: Franchisor does not affirm financial stability, suggesting possible liquidity or solvency stress
- 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
| 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
36 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 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 46 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 F-grade franchise with a risk score of 81 out of 100, 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.
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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.