What is the non-refundable transfer fee required by Del Taco in connection with a franchise transfer?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
fully complete (to Del Taco's satisfaction) all training programs required by Del Taco upon such terms and conditions as Del Taco may reasonably require (and while Del Taco will not charge a fee for attendance at such training programs, the transferee shall be responsible for the salary and all expenses of the person who attends training).
- 12.4.10 In connection with any proposed transfer, to compensate Del Taco for Del Taco's legal, accounting, training, and other expenses incurred in connection with the transfer, Franchisee shall pay Del Taco a non-refundable transfer fee in the amount of Five Thousand Dollars ($5,000). The transfer fee shall be paid at the earlier of (a) when the transferee signs the new franchise agreement, or (b) when the transferee begins training. The transfer fee is non-refundable. In addition, in the event a proposed transfer is not consummated or closed, for any reason except for disapproval by Del Taco, Franchisee or the proposed transferee
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee must pay a non-refundable transfer fee of $5,000 to Del Taco in connection with any proposed transfer of the franchise. This fee is intended to compensate Del Taco for the expenses it incurs related to the transfer, including legal, accounting, and training costs.
The transfer fee is due at the earlier of two events: when the transferee signs the new franchise agreement, or when the transferee begins training. Because the fee is non-refundable, the franchisee will not receive this money back, regardless of whether the transfer is ultimately completed.
Furthermore, if a proposed transfer is not completed due to any reason other than Del Taco's disapproval, the franchisee or proposed transferee is responsible for reimbursing Del Taco for all costs and expenses incurred during the evaluation process. These costs can include attorneys' and accountants' fees, background checks, site evaluations, and training expenses, to the extent that these costs are not already covered by the initial $5,000 transfer fee.