Can a Del Taco franchisee expect financial assistance from Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
g contracts and arrangements negotiated by Del Taco or third parties as part of a network or multiple-franchise or multiple-restaurant supply and distribution arrangement, and Franchisee's contracts with and obligations to suppliers. Franchisee shall promptly pay all suppliers in accordance with the agreed-upon terms. In the event Franchisee fails to promptly pay one or more suppliers as required, Del Taco may, but is not required to, pay such supplier(s) on behalf of Franchisee, and Franchisee shall promptly reimburse Del Taco for such payment following notice from Del
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, Del Taco does not generally offer direct financial assistance to franchisees. However, Del Taco may, under certain circumstances, pay suppliers on behalf of a franchisee who fails to make timely payments, with the expectation that the franchisee will promptly reimburse Del Taco. This is not guaranteed and is at Del Taco's discretion.
While Del Taco doesn't provide direct financing, they may offer support in other ways that could ease the financial burden on franchisees. For example, if a franchisee elects to purchase computer-related hardware or equipment through Del Taco, Del Taco will purchase the hardware or equipment on the franchisee's behalf from approved third-party vendors and will resell such hardware or equipment to the franchisee at no markup. The franchisee will reimburse Del Taco in full for the costs of such hardware or equipment. After the restaurant opens, the franchisee and Del Taco will reconcile the total, actual purchase price of the hardware or equipment, and the franchisee will reimburse Del Taco for the amount of the purchase price.
Prospective franchisees should note that Del Taco requires franchisees to cover various costs, such as expenses related to pre-opening support (travel, meals, and lodging for Del Taco representatives), fees for pre-opening technical support services, and ongoing training expenses for franchisees and their employees. Additionally, franchisees are responsible for purchasing or leasing computer systems, which can range from $59,000 to $100,000. Therefore, franchisees should carefully consider these expenses and ensure they have sufficient capital to cover them.