What is Del Taco's policy regarding funding of its retirement plans?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
l year 2021 and forward. The statutes of limitations for California, which constitutes the Company's major state tax jurisdiction, have not expired for fiscal years 2018 and forward.
12. RETIREMENT PLANS
We sponsor programs that provide retirement benefits to our employees. These programs include defined contribution plans, defined benefit pension plans, and postretirement healthcare plans.
Defined contribution plans — At the beginning of fiscal year 2024, we maintained two qualified savings plans pursuant to Section 401(k) of the Internal Revenue Code ("IRC"); the Jack in the Box Inc. Easy$aver Plus Plan and the Del Taco Savings Plan. Effective January 1, 2024, the Del Taco Savings Plan was merged into the Easy$aver Plus Plan so that now we maintain one qualified savings plan. The plan allows all employees who meet certain age and minimum servic
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the company sponsors programs to provide retirement benefits to its employees, including defined contribution plans. At the beginning of fiscal year 2024, Del Taco maintained the Del Taco Savings Plan, which was a qualified savings plan pursuant to Section 401(k) of the Internal Revenue Code. However, effective January 1, 2024, the Del Taco Savings Plan was merged into the Jack in the Box Inc. Easy$aver Plus Plan. Now, the company maintains one qualified savings plan.
The plan allows employees who meet certain age and minimum service requirements to defer a percentage of their pay on a pre-tax basis. Del Taco's contributions to these plans totaled $3.3 million in fiscal year 2024, $2.3 million in 2023, and $2.1 million in 2022.
For a prospective franchisee, this indicates that Del Taco provides retirement benefits to its employees through a defined contribution plan, and the company makes contributions to these plans. The amount of these contributions has varied over the past three years. Franchisees may want to inquire about the specific eligibility requirements for employees to participate in the plan and the details of the company's matching contributions.