What is the approximate range of out-of-pocket costs for Del Taco audit fees and expenses?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Fees and Expenses | Will not exceed our actual out-of-pocket costs (currently about $1,000 to $2,000) | As incurred | You must pay all amounts shown as due. If you understated net sales by 1% or more, you also must pay all costs of the audit. |
Source: Item 6 — OTHER FEES (FDD pages 18–21)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees can expect to pay between approximately $1,000 and $2,000 for audit fees and expenses. These fees cover Del Taco's actual out-of-pocket costs associated with conducting an audit of the franchisee's business. These fees are incurred as needed.
Franchisees are responsible for paying all amounts determined to be due following an audit. Furthermore, if an audit reveals that a franchisee has understated their net sales by 1% or more, the franchisee is also responsible for covering the full cost of the audit itself. This condition incentivizes accurate financial reporting by franchisees.
In the franchise industry, it is common for franchisors to conduct periodic audits of franchisees to ensure compliance with the franchise agreement and to verify the accuracy of reported sales. The specific terms and conditions related to audits, including the allocation of costs, can vary from one franchise system to another. Prospective Del Taco franchisees should be aware of the circumstances under which they may be responsible for audit costs, as well as the potential consequences of underreporting sales.