What interest rate will Del Taco charge on overdue payments?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
ays' prior written notice to Franchisee.
- 3.6 No Subordination. Franchisee shall not subordinate to any other obligation its obligation to pay Del Taco the Royalty Fees and/or any other fee or charge payable to Del Taco, whether under this Agreement or otherwise.
- 3.7 Overdue Payments and Reports; Interest. Any payment or report not actually received by Del Taco on or before the date such payment or report is due shall be deemed overdue. If any payment or report is overdue, Franchisee shall pay Del Taco, in addition to the overdue amount, a late payment/late report charge of one hundred dollars ($100) for each week or part the
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, any payment or report not received by the due date is considered overdue. If a payment or report is overdue, Del Taco will charge a late payment/late report fee of $100 for each week (or part of a week) the payment or report is late.
In addition to the late fee, Del Taco will also charge interest on the overdue amount. The interest rate is 1.5% per month, or the maximum rate permitted by law, whichever is less. This interest accrues from the original due date until the payment is made.
This policy ensures that Del Taco franchisees make timely payments and submit reports. The late fees and interest charges are intended to compensate Del Taco for the administrative burden and potential financial losses caused by late payments or reports. Franchisees should be aware of these charges and ensure that all payments and reports are submitted on time to avoid incurring these additional costs.