How to Finance a Del Taco Franchise in 2026

Del Taco requires a $1.1M–$2.0M investment — a full QSR build with drive-through. SBA 7(a) is the primary financing vehicle. Here's how lenders approach the deal.

Key takeaways

Del Taco is a Mexican-American QSR with over 600 locations concentrated in the Western and Southern United States. The brand is owned by Jack in the Box Inc. Del Taco's drive-through format and dual QSR/fast-casual positioning — with both value burgers and Mexican items on the same menu — makes it operationally more complex than single-concept fast-casual. Lenders evaluate Del Taco deals in the context of full QSR underwriting standards. This guide covers financing mechanics only.

What lenders look for in a Del Taco franchise application

Per the current FDD, total estimated initial investment runs $1.1M–$2.0M depending on unit format (freestanding drive-through vs. end-cap), geography, and land acquisition vs. lease. Lenders evaluate the following when underwriting a Del Taco deal:

Deal structuring note

Del Taco's dual-menu format (burgers + Mexican) requires more prep equipment and kitchen complexity than single-concept QSR — lenders view this as higher operational risk and want documented QSR management experience. At the $1.5M–$2.0M top of the range with freestanding real estate, pairing a $1.2M SBA 7(a) with an SBA 504 debenture for the land component reduces long-term variable-rate exposure. Jack in the Box Inc. (JACK, NASDAQ) publishes Del Taco FDD disclosure in its public filings — lenders can validate AUV data from SEC 10-K disclosures.

SBA 7(a) for Del Taco franchises

The SBA 7(a) loan program is the primary financing vehicle for Del Taco franchise acquisitions. Del Taco's listing on the SBA Franchise Directory allows lenders to bypass independent franchise agreement review — shortening timelines by 2–4 weeks. Key parameters:

SBA 504 for real estate and build-out

The SBA 504 program is well-suited for Del Taco's freestanding pad-site format when the franchisee acquires the underlying real estate as owner-occupied commercial property. Structure: 50% conventional bank loan + 40% SBA 504 debenture (long-term fixed rate) + 10% borrower equity. At $1.5M+ total project cost including land, the 504's fixed-rate debenture tranche can materially reduce long-term financing cost relative to an all-variable 7(a).

Equipment financing for Del Taco

Commercial fryers, flat-top grills, steam tables, refrigeration, drive-through communication systems, and POS equipment are Del Taco's primary equipment line items. These can be financed separately via equipment loans or leases layered on top of the SBA 7(a). Equipment loans typically run 3–7 year terms, collateralized by the equipment itself. Confirm with Del Taco/Jack in the Box Inc. which vendors and specifications are approved before structuring equipment financing.

Franchisor financing programs

Del Taco (Jack in the Box Inc.) does not operate a direct in-house lending program for franchisees. The company maintains preferred lender relationships and may provide introductions during the franchisee approval process. Multi-unit development agreements may carry incentive structures for operators committing to area development — review the current FDD and engage Del Taco's franchise development team for current program details.

Down payment and liquidity requirements

Specific Del Taco financial qualification thresholds are disclosed in the current FDD — review Item 7 with your lender before applying. As a planning benchmark, on a $1.5M total project the SBA equity injection requirement is $150K–$300K from non-borrowed liquid funds. Del Taco's investment range is at the full QSR tier — lenders expect net worth substantially above the loan amount and documented QSR operating experience for first-time franchisees at this level.

Timeline to funding

  1. Pre-qualification: Lender reviews financial statements, Del Taco approval letter, and FDD. 1–2 weeks.
  2. SBA package: Full SBA application: SBA Form 413, 3 years tax returns, business plan, site lease or purchase agreement. 2–3 weeks.
  3. SBA approval: SBA review and conditional commitment. 3–6 weeks depending on lender's Preferred Lender (PLP) status.
  4. Closing and funding: Title, legal, and closing. 2–3 weeks post-commitment. Total: 60–90 days from complete application.

Apply with ClearValue Lending

ClearValue Lending works with franchise operators at every stage — from first-unit acquisition to multi-unit expansion financing. Apply at Find my match. Your file routes to one matched lender in our network. Related: SBA 7(a) loans explained · SBA 504 loan explained.

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Frequently asked questions

Can I use an SBA loan to finance a Del Taco franchise?

Yes. Del Taco is on the SBA Franchise Directory, allowing lenders to skip independent franchise agreement review. SBA 7(a) can finance the portion of the deal above your equity injection, up to $5M.

How much cash do I need to open a Del Taco franchise?

Specific liquid capital requirements are in the FDD. Plan for a 10–20% SBA equity injection on the financed portion plus working capital reserves. At Del Taco's $1.1M–$2.0M range, the injection floor is typically $110K–$200K minimum.

Does Del Taco offer in-house financing for franchisees?

Del Taco (Jack in the Box Inc.) does not operate a direct lending program. Preferred lender relationships are maintained and introductions may be provided during franchisee approval, but actual debt is market-rate from third-party lenders.

What credit score do I need for a Del Taco franchise loan?

Most SBA lenders require 680+ personal FICO for franchise deals. At Del Taco's investment level, lenders also assess net worth relative to the loan amount and want documented QSR operating experience.

How long does financing take for a Del Taco franchise?

Expect 60–90 days from a completed SBA application to funding. SBA Preferred Lenders can issue conditional commitments in 3–4 weeks. Coordinate Del Taco franchisee approval in parallel to avoid sequencing delays.