By what day of the month must a Del Taco franchisee pay the Royalty Fees?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
romotional Fee for any reason. If Franchisee fails to spend all of the Promotional Fee within 12 months after the opening of the Restaurant, Franchisee shall forfeit the unused portion of the fee and Del Taco shall apply it toward Del Taco's general advertising or marketing programs.
- 3.3 Royalty Fees. During the initial term of this Agreement, Franchisee shall pay Del Taco a continuing royalty fee in an amount equal to five percent (5%) of the Restaurant's Net Sales ("Royalty Fees"). Franchisee shall pay the Royalty Fees monthly by the fifteenth (15th) day of each month, based on the Net Sales of the Restaurant for the immediately preceding month, or for such other period as Del Taco may specify in the Manuals or otherwise in writing. For Net Sales resulting from the operation or conduct of games or coin or token-operated devices such as pay telephones; cash, credit or debit machines (including automated teller machines); newspaper stands; and any type of vending machines, including, without limitation, electronic devices of all types (collectively, "Games and Devices"), Franchisee agrees to pay to Del Taco, during the term of this Agreement, a royalty of forty percent (40%) of Net Sales from Games and Devices ("Royalty for Games and Devices"). The Royalty for Games and Devices is net of any tax, including excise tax, or other fee imposed upon Del Taco due to the collection of the Royalty for Games and Devices, and shall be paid monthly on the fifteenth (15th) day of each month, based on the Net Sales of the Restaurant from Games and Devices for the immediately preceding month, or for such other period as Del Taco may specify in the Manuals or otherwise in writing.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees are required to pay Royalty Fees monthly. These fees, calculated as five percent of the Restaurant's Net Sales, must be received by Del Taco by the fifteenth of each month. This payment schedule is based on the Net Sales of the Restaurant for the immediately preceding month.
In addition to the standard Royalty Fees, Del Taco franchisees also pay a royalty of forty percent of Net Sales from Games and Devices, which includes revenue from coin-operated devices, ATMs, and vending machines. This royalty is also due monthly on the fifteenth of each month, based on the Net Sales of the Restaurant from Games and Devices for the immediately preceding month.
Del Taco requires that all payments, including Royalty Fees and Marketing Fees, be made via electronic funds transfer (EFT) to ensure timely receipt. Franchisees must authorize direct debits from their business bank operating account for this purpose. While the standard due date is the 15th of each month, Del Taco's procedures may require franchisees to have sufficient funds in their account a day earlier, as the EFT process might initiate the sweep the day before the actual due date. Del Taco retains the right to modify the due date for any fees with ten days' prior written notice to the franchisee.