Taco Chain Cuts Master Developer Deal for South Bay

SAN JOSE, CA-Local businessman Jim LaBrie has cut a deal with the Seattle-based Taco Del Mar chain to take secure sites, sell franchise rights and handle marketing and operations for new restaurants in San Mateo, Santa Clara and Santa Cruz counties. The so-called master developer agreement is the low-overhead expansion strategy of choice for many restaurant chains.

Operating under the name TDM Bay Area Management Corp., LaBrie paid around $100,000 to assume the so-called “master developer” role. In return, he will share in the royalties and franchise fees. Taco Del Mar’s Neil Hollingsworth tells GlobeSt.com LaBrie’s income will include 6% of gross sales from the restaurants in his territory as well as a percentage of the franchise fees, which start at $20,000 for the first location.

LaBrie’s agreement, which launches Taco Del Mar’s foray into California, is similar to agreements the chain has entered into for its expansion into Texas, Arizona, Montana, Wyoming, Idaho, Utah and British Columbia. In addition to South Bay, Hollingsworth says Taco Del Mar is working toward similar agreements for the San Diego and Sacramento markets.