What is the Franchise Fee for a Del Taco Restaurant operating at a nontraditional location?

According to Del Taco's 2025 Franchise Disclosure Document, the franchise fee for a Del Taco restaurant operating at a nontraditional location is $1,750 per year of the franchise agreement term. This fee structure differs from the standard franchise fee of $35,000 for a traditional Del Taco restaurant.

This annual fee structure for nontraditional locations may be more appealing to some franchisees as it reduces the initial investment required to start the business. Instead of paying a large upfront fee, the franchisee pays a smaller annual fee over the term of the agreement. However, over the life of a standard franchise agreement, which is often 10 or 20 years, the total franchise fees paid for a nontraditional location could potentially exceed the $35,000 required for a traditional location.

It's important to note that while the franchise fee differs for nontraditional locations, the other initial fees associated with opening a Del Taco restaurant remain the same. Prospective franchisees should carefully consider the length of the franchise term and calculate the total franchise fees payable under both the traditional and nontraditional models to determine which option is more financially advantageous for their specific circumstances. Franchisees should also clarify with Del Taco what constitutes a "nontraditional location" to ensure they understand which fee structure applies to their situation.