Del Taco Franchise Opportunity

A Fresh Franchise Opportunity!

Del Taco first opened its doors in 1964, when Ed Hackbarth's taco stand and hamburger stand combined to serve guests quality and fresh Mexican and American favorites. Today, Del Taco is the second largest quick-service restaurant concept in the Mexican category with over 550 restaurants in 16 states. In June of 2015, Del Taco was acquired by Levy Acquisition Corp. and began being traded on the NASDAQ with the ticker symbol of TACO. This transition into a public company poises Del Taco Restaurants Inc. for tremendous growth as well as a strong national competitor and a continued leader in the QSR+ space.

The MQSR category is one of the fastest growing industry segments, and Del Taco attracts a broad customer base across age groups, income levels and demographics, by providing popular Mexican menu items such as tacos, burritos and quesadillas with American favorites like hamburgers, crinkle cut fries and shakes.

What sets Del Taco apart from the competition is that the brand delivers fresh, quality food on par with the Fast Casual segment but served at the speed and price of a Quick Service Restaurant. Consumers gravitate to "better" quick-service restaurants, which has transformed the industry and has created a subset of "QSR-Plus."

By offering a Buck and Under Menu with an unmatched variety of items that start as low as 59 cents, Del Taco was named "Best Value for Your Money" by the nation's leading consumer review publication. Del Taco has also seen sales growth through the introduction of more premium menu options and healthier items, such as the addition of fresh sliced avocado and handcrafted Ensaladas.

With a menu featuring made-to-order items made with fresh ingredients, an unbeatable Buck and Under value menu and a focus on product innovation, Del Taco successfully meets guests' evolving tastes and demands for quality food served at a great value.

As one of the nation's leading QSR brands within the Mexican segment, Del Taco's potential for growth is tremendous. Our average unit volumes rank among the highest within the Mexican food segment of the quick serve industry. When Del Taco expands into new markets, it is remarkable how many consumers are familiar with the brand, know the menu and remember the last time they ate at Del Taco. It's no surprise Del Taco outperforms competitors. As you contemplate your potential business venture, take advantage of this opportunity to leverage the Del Taco Brand, smart systems and history of success.

Growth of Epic Proportions

With over 50 years of proven success, Del Taco is growing its franchise and company-owned restaurant presence and continues to operate more than half of the system's restaurants, which provides the brand with a true understanding of the right business model and the right location. Backed by a strong Franchise Development team, Del Taco is aggressively seeking qualified franchisees to grow in existing and new markets across the country.

With an experienced, trusted leadership team and a proven business model that sets up our franchisees for success, Del Taco is prepared to combine your passion and expertise with a brand on the move. With a Del Taco expanding rapidly across the country and offering exclusive development territories available throughout the U.S. for qualified candidates, the time is now to contact Del Taco to discuss your area of interest.

Reasons To Invest

It's the perfect time for your next bold business opportunity, and Del Taco is focused on providing an UnBelievable franchise for you. As one of the nation's leading Mexican QSR brands with a nearly 50 year history, it is aggressively expanding across the US and seeking experienced multi-unit restaurant operators.

• Average unit sales of $1,459,541 million and 28.27% operating profit of $410,858*
• Industry Leading YOY comparable restaurant sales growth
• Competitive average food & paper costs of 27.6%
• Positioned for growth with a compelling QSR+ Proposition: Quick Service Value + Fast Casual Quality
• Leader in the growing Mexican Quick Service Category
• Menu of venues for flexible real estate development
• Extensive training and support along with appealing and effective marketing programs
• Experienced, trusted leadership team and strong company financials
• Broad consumer base appeal with innovative, fresh menu offerings at a great value
• Strong, proven operations and marketing support for nearly 550 restaurants in 16 states
• Corporate store ownership and development means we have "skin in the game" and understand what's important to our franchise partners - bottom line profits, not just top line sales!
• Innovative multi-platform marketing campaigns that speak to today's consumers
• Exclusive development territories available across the country**
• Incentive programs available for new market development, veterans and minorities

* See Item 19 of the 2017 Franchise Disclosure Document for details. Figures reflect averages for 286 freestanding company-operated Del Taco restaurants that have been in operation for at least one year. These averages are based on a 53 week fiscal period from December 29, 2015 through January 3, 2017. Of these 286 restaurants, 137 restaurants attained or exceeded the average total unit sales. A new franchisee's results may differ from the represented performance. There is no assurance that you will do as well and you must accept that risk. This amount represents the average sales and operating figures of all freestanding company-operated Del Taco restaurants for the 53 and 52 weeks ended January 3, 2017 and December 29, 2015, respectively, that we have operated for at least one year.

This information is not intended as an offer to sell a franchise. We will not offer you a franchise until we have complied with disclosure and registration in your jurisdiction. Contact Del Taco LLC, 25521 Commercentre Drive, Lake Forest, CA 92630 to request a copy of our FDD. RESIDENTS OF NEW YORK: This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Ney York Department of Law. RESIDENTS OF MINNESOTA: MN Franchise Registration Number: F - 5365
** See 2017 FDD for details.

Training and Support

Our leadership team, brand legacy and proven business model offer our franchisees the personal support, systems and resources needed to help establish manage and grow their business. From referring financing sources, site selection assistance and construction oversight to extensive hands-on management and crew training, new store opening support and robust marketing materials, our assistance doesn't end when you open your doors. Our professional and experience support team also provides:

• New store opening and regional field trainers to open your restaurant strong
• Ongoing management/crew training and interactive on-line manuals to support your operations
• Dedicated franchise business consultant provides operations and financial coaching and is your key point of contact
• State-of-the-art POS systems to help franchisees track business indicators
• 24-hour technical support help desk and customer comment line
• Restaurant Audit team protects brand standards and gives hands on coaching & guidance
• Dedicated field marketing manager and local store marketing toolbox, including community-based programs, provide assistance in growing your business
• Procurement & Distribution team ensures brand protection, food safety, continuous availability of ingredients, and lowest possible costs

Strong Franchisee Relationships

At Del Taco, franchisee success is very important. By employing a methodical approach to operations that includes ongoing menu innovation, value pricing and marketing support at a local level, franchisees can expect to be armed with all the tools they need for business success. Our operations philosophy is: ONE TEAM, ONE VOICE, TRUSTED PARTNERS! Learn more from some of our bold Del Taco franchisees.

This web page does not constitute a franchise offering or an offer to sell a franchise. A franchise offering can be made by us only in a state if we are first registered, excluded, exempted or otherwise qualified to offer franchises in that state, and only if we provide you with an appropriate franchise disclosure document.