How much notice will Del Taco provide before increasing the License Fee?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Del Taco at a Licensed Restaurant and any costs of travel for a Del Taco representative to arrive at Licensee's Restaurant(s) as further described in Article 7.4.
Additional Services. As part of the Covered Services, Del Taco shall install menu changes and price updates on the Licensee's personal computer on a periodic basis, as reasonably requested by the Licensee. Del Taco shall not provide any Additional Services with respect to alternate concepts or products not a part of the standard Del Taco Restaurant system unless approved in writing by Del Taco.
FEES
License Fee. Within five days after the opening date of ea
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco may increase the License Fee, but they must provide the franchisee with 30 days' prior written notice before doing so. The License Fee is a one-time fee paid by the franchisee to Del Taco for each Licensed Restaurant to acquire the Software and Documentation.
In practical terms, this means that if Del Taco decides to raise the License Fee, they cannot simply implement the increase immediately. They are obligated to inform the franchisee in writing at least 30 days before the new fee takes effect. This gives the franchisee time to prepare for the increased cost and adjust their financial planning accordingly.
It's important for a prospective Del Taco franchisee to understand the conditions under which fees can be increased, and the notice period provided. Franchisees should factor in potential fee increases when assessing the overall cost of investment and ongoing operational expenses. They should also clarify with Del Taco what factors might trigger a License Fee increase to better anticipate future changes.