What was the imputed royalty (5%) in dollars for freestanding company-owned Del Taco restaurants in 2023?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
rtain other operating costs and expenses of the freestanding company-owned Restaurants as of the end of the 2023 and 2022 annualized fiscal years.
| Table 19-2-A Freestanding Company-Owned Restaurant Average Operating Results (Fiscal Years 2024, 2023 and 2022) | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | Annualized 2022 | ||||
| Dollars | Percent of Sales | Dollars | Percent of Sales | Doll |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 47–54)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the average imputed royalty (5%) for freestanding company-owned restaurants in 2023 was $87,283. This figure represents what Del Taco company-owned restaurants would have paid in royalties had they been franchisees.
It is important to note that company-owned Del Taco restaurants do not actually pay royalties. However, this imputed royalty provides a benchmark for prospective franchisees, illustrating the royalty expense they can expect to pay on their gross sales. The document also specifies that company-owned restaurants do pay a marketing fee equal to 4% of net sales, similar to franchisees.
This data point is derived from a table presenting average operating results for company-owned Del Taco restaurants. While this information can be helpful in estimating potential earnings, the FDD clearly states that individual results may vary. Prospective franchisees should conduct their own independent investigation of costs and expenses, and consider factors such as location, management quality, and local market conditions, which can significantly impact financial performance.