What are the conditions under which Del Taco franchisees must report sales?

According to the 2025 Del Taco Franchise Disclosure Document, franchise agreements generally require franchisees to pay royalty and marketing fees based on a percentage of gross sales. This implies that franchisees must regularly report their gross sales to Del Taco, as these figures directly determine the royalty and marketing fees owed. These payments are for a 20-year term.

Franchisees are also required to pay technology and sourcing fees, though the FDD does not specify if these are also based on gross sales. The obligation to report sales is a standard practice in the franchise industry, allowing franchisors to calculate royalties and ensure brand consistency through marketing fund contributions.

The FDD mentions that Jack in the Box acquired Del Taco in 2022, and the company's revenue comes from both company-operated restaurants and franchise-operated restaurants. This revenue includes royalties and fees from franchisees, highlighting the importance of accurate sales reporting for the franchisor's financial health. The marketing fund contributions from Del Taco franchise and company-operated restaurants were approximately 4.0% of sales in 2025 and 2024.

Prospective franchisees should clarify with Del Taco the exact frequency and method of sales reporting, as well as the specific percentages used for calculating royalty, marketing, technology, and sourcing fees. Understanding these reporting requirements is crucial for managing the financial obligations and maintaining a transparent relationship with the franchisor.