When is the monthly royalty fee due for a Del Taco franchise?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty 2 | 5% of net sales | Payable monthly by electronic funds transfer by the fifteenth (15th) day of each month, based on the Net Sales for the preceding month | Net sales include all revenue from the Restaurant, except for refunds and sales or similar taxes. |
| Royalty for Games and Devices | 40% of net sales from such games and devices | Payable monthly by electronic funds transfer by the fifteenth (15th) day of each month, based on the Net Sales for the preceding month | “Games and Devices” means coin, token, card or internet devices like pay telephones, cash, credit or debit machines (including automated teller machines), newspaper stands, slot machines, wireless, or similar machines. |
| Marketing | 4% of net sales | Payable monthly by electronic funds transfer by the fifteenth (15th) day of each month, based on the Net Sales for the preceding month | We may increase the fee to the then-current fee we charge new franchisees upon notice to you. The marketing fee for nontraditional locations is typically 1.4% of net sales, but we may modify this fee. |
| Technology Systems Support Services Fee 3 | $173.81 per restaurant per month for your 1st through 5th restaurants; $148.82 per restaurant per month for your 6th through 10th restaurants; $123.84 per restaurant per month for your 11th restaurant and beyond | Payable monthly after opening in advance on the first day of each month (or as we may specify in writing) | You must purchase and maintain the systems we require. See Items 8 and 11. Upon notice, we may increase the fee to the then-current fee we charge new franchisees. |
Source: Item 6 — OTHER FEES (FDD pages 18–21)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the standard royalty fee, which is 5% of net sales, is payable monthly by electronic funds transfer. This payment is due by the fifteenth (15th) day of each month and is based on the net sales from the preceding month. Net sales include all revenue from the restaurant, with the exception of refunds and sales or similar taxes.
Del Taco also charges a royalty for games and devices, which is 40% of net sales from such games and devices. This fee is also payable monthly via electronic funds transfer by the 15th day of each month, based on the net sales for the preceding month. "Games and Devices" include coin, token, card or internet devices like pay telephones, cash, credit or debit machines (including automated teller machines), newspaper stands, slot machines, wireless, or similar machines.
Additionally, Del Taco franchisees must pay a marketing fee of 4% of net sales, also payable monthly by electronic funds transfer by the 15th day of each month, based on the net sales for the preceding month. The marketing fee for nontraditional locations is typically 1.4% of net sales, but Del Taco may modify this fee. Del Taco may increase the standard marketing fee upon notice to the franchisee.
Another monthly fee is the Technology Systems Support Services Fee, which varies depending on the number of restaurants the franchisee operates. For the first through fifth restaurants, the fee is $173.81 per restaurant per month. For the sixth through tenth restaurants, it is $148.82 per restaurant per month, and for the eleventh restaurant and beyond, it is $123.84 per restaurant per month. This fee is payable monthly after opening in advance on the first day of each month (or as Del Taco may specify in writing).