Does a Del Taco franchisee have complete control over the prices charged for menu items?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to the sale of all Menu Items, products, or services, Franchisee shall have sole discretion as to the prices to be charged to customers; provided, however, that Del Taco may establish, advertise, and promote minimum and maximum prices on such Menu Items, products, and services, subject to compliance with applicable laws.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees have sole discretion over the prices charged for menu items, products, and services. However, this discretion is limited by Del Taco's right to establish, advertise, and promote minimum and maximum prices for these items, products, and services, provided that such pricing complies with applicable laws.
This means that while a Del Taco franchisee can set prices, Del Taco retains the authority to set price boundaries. Franchisees must stay within these established minimum and maximum price ranges, if any are set. This is a fairly common practice in franchising, allowing the franchisor to maintain brand consistency and manage price perception across different locations.
For a prospective franchisee, this implies that while you have some pricing flexibility, you cannot deviate too far from Del Taco's established pricing strategy. It would be prudent to understand Del Taco's pricing guidelines and how frequently they are updated to assess the potential impact on profitability and competitiveness in the local market.