factual

What is the 'License Fee' for the Del Taco software, and how often is it payable?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

"License Fee" means that one-time fee payable to Del Taco for use of the Software and Documentation for each Licensed Restaurant**.**

Within five days after the opening date of each Licensed Restaurant, Licensee shall pay a one-time fee to Del Taco in the amount set forth on Exhibit A for each License to acquire the Software and Documentation for each Licensed Restaurant. If Licensee desires to acquire Licenses for additional Licensed Restaurant(s), the parties shall insert additional appendices to incorporate the additional Licensed

Restaurant(s) and Licensee shall then pay a License Fee to Del Taco for each additional License. Del Taco may, upon 30 days' prior written notice to Licensee, increase the License Fee.

Source: Item 23 — RECEIPTS (FDD pages 59–325)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee must pay a one-time 'License Fee' for the use of the Del Taco's proprietary ULTRABOS software system and its documentation. This fee is payable within five days after the opening date of each licensed restaurant. The amount of the license fee is set forth on Exhibit A of the agreement.

If a franchisee desires to acquire licenses for additional restaurants, they must incorporate additional appendices to include these restaurants and then pay a license fee to Del Taco for each additional license. Del Taco retains the right to increase the license fee, but they must provide the franchisee with 30 days' prior written notice before doing so.

The software license grants the franchisee a non-exclusive, non-transferable license to use a single copy of the software at one personal computer in each licensed restaurant. The software is designed for internal business purposes, specifically for labor scheduling, calculating ideal food costs, and maintaining inventory and sales records.

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.