factual

Must a Del Taco franchisee reimburse Del Taco for its representatives' travel, meals, and lodging incurred while providing pre-opening support?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee must reimburse Del Taco for its representatives' travel, meals, and lodging incurred while providing pre-opening support.

Source: Item 22 — CONTRACTS (FDD pages 58–59)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee is required to reimburse Del Taco for the travel, meals, and lodging expenses incurred by Del Taco representatives while they are providing pre-opening support. This means that in addition to the initial franchise fee and other startup costs, a new Del Taco franchisee must also budget for these support-related travel expenses.

This reimbursement covers the costs Del Taco incurs to have its personnel present at the restaurant location to assist with the opening process. The FDD specifies that the date and time of this pre-opening support will be determined by Del Taco. This implies that Del Taco has control over the duration and intensity of the support, which in turn affects the total reimbursable expenses.

In addition to reimbursing Del Taco for travel, meals, and lodging, the franchisee is also responsible for paying fees associated with pre-opening technical support services provided by Del Taco or an approved third-party vendor. These fees may include hourly charges, adding another layer of expense during the restaurant's initial setup phase. It is important for prospective franchisees to factor in these costs when evaluating the overall investment required to open a Del Taco franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.