What is included in 'Benefits' for Del Taco restaurants, and what factors could cause these costs to differ?

According to Del Taco's 2025 Franchise Disclosure Document, 'Benefits' encompass all employer and payroll taxes, including worker's compensation, along with provisions for vacation, health insurance, and restaurant manager bonuses. This means that as a Del Taco franchisee, you are responsible for covering these costs for your employees. These expenses are in addition to the wages paid to hourly and management employees.

The FDD indicates that several factors can influence the cost of benefits. These include the amount of vacation time granted to employees, the extent and type of insurance coverage provided, and the specifics of your workers' compensation program. Therefore, a franchisee's decisions regarding these aspects of employee benefits directly impact their overall costs. For example, offering more comprehensive health insurance plans or more generous vacation policies will increase benefit expenses.

Table 19-2-A provides average benefit costs for company-owned Del Taco restaurants, offering a benchmark for potential franchisees. In 2024, 2023, and annualized 2022, these costs were $92,502 (5.1% of sales), $97,130 (5.6% of sales), and $86,965 (5.2% of sales), respectively. However, these figures are averages and your actual costs may vary based on the factors mentioned above and your ability to manage labor costs effectively. Prospective franchisees should carefully consider these variables and consult with insurance and payroll professionals to estimate their potential benefit expenses accurately.