When can a Del Taco franchisee open their restaurant in relation to payments due to Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
erating Principal, the Restaurant Manager and the Shift Managers have successfully completed all training required by Del Taco,
and Franchisee has hired and trained to Del Taco's standards a sufficient number of employees to service the anticipated level of the Restaurant's customers.
- 5.3.5 Franchisee shall not open the Restaurant until all amounts due to Del Taco under this Agreement or any other related agreements have been paid.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee cannot open their restaurant until all amounts due to Del Taco under the Franchise Agreement or any other related agreements have been paid. This requirement ensures that Del Taco receives all initial fees and any other outstanding payments before the franchisee begins operations.
This stipulation is a standard practice in franchising, designed to protect the franchisor's financial interests and ensure that franchisees are in good standing from the outset. For a prospective Del Taco franchisee, this means that they must budget and plan to have all required payments ready before the anticipated opening date. Failure to meet this condition could delay the restaurant opening and impact the franchisee's business plan.
Del Taco also has the right to collect all fees and payments due by the franchisee through electronic funds transfer (EFT), as provided in the agreement or manuals. This facilitates timely and consistent payments. Franchisees must be aware of these payment obligations and procedures to avoid any delays or complications in the opening process.