Besides the base rental, what other rent is a Del Taco subtenant required to pay?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the Base Rental, Subtenant shall pay Sublandlord all percentage rent that Sublandlord must pay under the Master Lease during the term of this Sublease. In addition, Subtenant shall complete all reporting requirements pursuant to the Master Lease at least 10 days prior to the time for Sublandlord to provide those items in the Master Lease.
During the term of this Sublease, Subtenant shall be liable for and shall pay by way of the above-described draws, any and all financial obligations required of the tenant under the Master Lease, including but not limited to all taxes, insurance, and common area maintenance fees (if any) ("Additional Rent"). All utilities and all other costs not noted here but associated with the Demised Premises, shall be paid directly to the appropriate entity by Subtenant.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, in addition to the base rental, a Del Taco subtenant must pay percentage rent and additional rent. The subtenant is required to pay all percentage rent that the sublandlord must pay under the master lease during the term of the sublease. The subtenant must also fulfill all reporting requirements as outlined in the master lease at least 10 days before the sublandlord's deadline.
Furthermore, the subtenant is liable for and must pay all financial obligations required of the tenant under the master lease. This includes, but is not limited to, all taxes, insurance, and common area maintenance fees, which are categorized as "Additional Rent." These payments are to be made through monthly draws, as determined by the sublandlord, following the terms specified in the franchise agreement.
Prospective Del Taco subtenants should carefully review the master lease to fully understand all financial obligations beyond the base rental. Understanding the terms of both the sublease and the master lease is crucial for managing costs and ensuring compliance. Additionally, the subtenant is responsible for paying all utilities and other costs associated with the premises directly to the appropriate entity.