What are the potential financial consequences for a Del Taco franchisee if deficiencies are detected during follow-up inspections?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
ing but not limited to providing access to Franchisee's employees and guests; and, upon notice from Del Taco or its agents and without limiting Del Taco's other rights under this Agreement, Franchisee shall take such steps as may be necessary to correct immediately any deficiencies detected during any such inspection. Franchisee shall reimburse Del Taco for all of Del Taco's costs and expenses, including labor and travel expenses, incurred in conducting all such follow-up inspections after
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees may face financial repercussions if deficiencies are found during follow-up inspections. After the initial follow-up inspection, the franchisee is responsible for reimbursing Del Taco for all costs and expenses associated with subsequent follow-up inspections. This includes labor and travel expenses incurred by Del Taco.
In addition to reimbursing Del Taco's expenses, Del Taco may also assess a reinspection fee of $500 per visit. The franchisee is required to make these payments within fifteen days of receiving an invoice from Del Taco. If the franchisee fails to make timely payments, Del Taco reserves the right to obtain payment through Electronic Funds Transfer (EFT) as outlined in Section 3.5 of the agreement.
These financial consequences highlight the importance of maintaining Del Taco's standards and correcting any deficiencies promptly. Franchisees should prioritize compliance with the brand's operational standards to avoid incurring these additional costs. It is also important to note that these financial repercussions are in addition to any other remedies Del Taco may pursue for violations of the franchise agreement.