When do I pay the Franchise Fee and Promotional Fee to Del Taco?

According to Del Taco's 2025 Franchise Disclosure Document, the Franchise Fee and Promotional Fee are due when you sign the Franchise Agreement. Item 7 includes a table outlining the estimated initial investment, which specifies that the Franchise Fee ranges from $35,000 to $35,000 and the Promotional Fee ranges from $10,000 to $10,000. Both fees are to be paid to Del Taco in a lump sum.

Prospective franchisees should note that these fees are part of the initial investment required to start a Del Taco franchise. Understanding when these fees are due helps in planning the financial aspects of opening a franchise. The Franchise Fee grants the franchisee the right to operate a Del Taco restaurant, while the Promotional Fee contributes to marketing and advertising efforts.

Knowing the payment schedule for these fees allows potential franchisees to align their financial resources with the franchisor's requirements. This up-front payment is a common practice in franchising, as it secures the franchisee's rights and provides initial capital for brand development and support. Franchisees should budget accordingly to ensure they can meet this obligation upon signing the Franchise Agreement.