factual

Does Del Taco charge a separate fee for the process of approving a new vendor?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

We reserve the right to designate more vendors in the future. If you desire to purchase any Supplies from a vendor not already approved, you must obtain our prior written approval, which may take up to three to six months after our receipt of all requested information, although that time frame can vary depending on the circumstances. As a condition to granting approval, we may require you to submit samples of the proposed vendor's products and to arrange for us to visit the vendor's facilities. If we elect to test the samples or inspect the proposed vendor's facilities, you will have to pay an amount not to exceed the actual cost of the inspection and the actual cost of the testing. We do not charge a separate fee for the approval process. The criteria we use in approving suppliers are available to franchisees upon written request.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–30)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, Del Taco does not charge a separate fee for the vendor approval process itself. However, if a franchisee wants to use a vendor that is not already approved, the franchisee must obtain prior written approval from Del Taco. This process can take three to six months after Del Taco receives all the necessary information, but the time frame can vary.

As a condition of approval, Del Taco may require the franchisee to submit product samples from the proposed vendor and arrange for Del Taco to inspect the vendor's facilities. If Del Taco chooses to test the samples or inspect the facilities, the franchisee will be responsible for paying the actual costs of the inspection and testing.

This means that while Del Taco does not have a specific 'approval fee,' a franchisee could incur costs related to testing and inspection if they propose a new vendor. This is a fairly standard practice in franchising, as franchisors need to ensure that all vendors meet their quality and safety standards. Franchisees should factor in these potential costs and time delays when considering using a non-approved vendor.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.