What is the minimum renewal fee for a Del Taco franchise?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Renewal Fees | Greater of $35,000 or the then-current initial franchise fee for new franchisees, plus the then-current Promotional Fee (currently $10,000) | On execution of the successor franchise agreement | You must pay the Renewal Fee and Promotional Fee in addition to any remodel costs required. |
Source: Item 6 — OTHER FEES (FDD pages 18–21)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees must pay a renewal fee upon executing a successor franchise agreement. The renewal fee is the greater of $35,000 or the then-current initial franchise fee for new franchisees. In addition to the renewal fee, franchisees must also pay the then-current Promotional Fee, which is currently $10,000.
This means that at a minimum, a Del Taco franchisee would need to pay $35,000 plus the $10,000 promotional fee, totaling $45,000, to renew their franchise, assuming the initial franchise fee for new franchisees is not lower than $35,000 at the time of renewal. However, if the initial franchise fee for new franchisees is higher than $35,000 at the time of renewal, the franchisee would be required to pay that higher amount instead, plus the promotional fee.
It's important to note that the franchisee is also responsible for any remodel costs required at the time of renewal, in addition to the renewal and promotional fees. This could significantly increase the overall cost of renewing the Del Taco franchise. Franchisees should be aware that these fees can change, as the initial franchise fee and promotional fee could increase by the time the agreement is up for renewal.