When is the Licensee required to pay the one-time License Fee to Del Taco for each Licensed Restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the Licensee is required to pay the one-time License Fee to Del Taco within five days after the opening date of each Licensed Restaurant. This fee is for the Licensee to acquire the Software and Documentation for each Licensed Restaurant. Del Taco retains the right to increase the License Fee, but they must provide the Licensee with 30 days' prior written notice before doing so.
If the Licensee wants to acquire licenses for additional restaurants, they will need to add appendices to their agreement to incorporate these additional locations. Subsequently, the Licensee will be required to pay a License Fee to Del Taco for each additional license acquired. This process ensures that each restaurant operating under the Del Taco brand has the necessary software and documentation licenses in place.
It is important for prospective Del Taco franchisees to understand these payment terms and factor them into their financial planning. The initial License Fee is due shortly after opening, and any increases to the fee will be communicated with a 30-day notice. Additionally, franchisees should be aware of the costs associated with acquiring licenses for additional locations as they expand their operations.