What is the payment schedule for the 'Support Services Fee' for Del Taco, and when is it due?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Support Services Fee" means that monthly fee payable to Del Taco for the Covered Services available for each Licensed Restaurant.
The Support Services Fee shall be paid by Licensee in advance on the first day of each calendar month or as Del Taco may specify in writing.
Simultaneously with the execution of this Agreement, Licensee shall pay the License Fee and the Support Services Fees for the Licensed Restaurants. The appendices identify the License Fees and Support Services Fees due for all the Licensed Restaurants for the initial Service Period. Thereafter, Licensee shall pay the License Fee and the Support Services Fee within 30 days of receipt of invoice, which shall be at least 30 days prior to the beginning of a Service Period. If Licensee adds a Licensed Restaurant to this Agreement, Licensee shall pay the License Fee and Support Services Fee to Del Taco for that Licensed Restaurant, which amount shall be prorated for the number of months remaining in the Service Period, within 30 days of receipt of invoice.
If Licensee fails to make any payment required under this Agreement within 30 days after the date such payment becomes due and payable, Del Taco may, in its sole discretion, (i) assess a late fee in an amount equal to the lesser of 1.5% per month or the maximum rate permitted by law on the delinquent amount; and/or (ii) terminate this Agreement effective immediately upon receipt of notice of termination.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the Support Services Fee is paid monthly in advance. Specifically, the Support Services Fee is due on the first day of each calendar month, or as otherwise specified in writing by Del Taco.
Simultaneously with the execution of the License Agreement, the licensee must pay the Support Services Fees for the Licensed Restaurants. The appendices to the agreement identify the Support Services Fees due for all the Licensed Restaurants for the initial Service Period. After that initial payment, the Licensee must pay the Support Services Fee within 30 days of receipt of invoice, which will be at least 30 days prior to the beginning of a Service Period. If a Licensed Restaurant is added to the agreement, the Licensee must pay the Support Services Fee to Del Taco for that Licensed Restaurant. The amount due will be prorated for the number of months remaining in the Service Period, and payment is due within 30 days of receipt of invoice.
If the Licensee fails to make any payment required under the agreement within 30 days after the date such payment becomes due and payable, Del Taco may, in its sole discretion, assess a late fee of the lesser of 1.5% per month or the maximum rate permitted by law on the delinquent amount, and/or terminate the agreement effective immediately upon receipt of notice of termination. This highlights the importance of adhering to the payment schedule to avoid penalties or termination of the agreement.