factual

Does Del Taco provide any form of financial assistance to franchisees?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

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Computer Systems

All new Del Taco franchisees must purchase their point-of-sale and back-office equipment and software from vendors that we may designate or approve and must enter into the Hardware and Software License and Support Agreement attached as Exhibit G-1 to this Disclosure Document. The Franchise Agreement and the Development Agreement require that you obtain and install in your Restaurant the data processing equipment, computer hardware, kitchen display systems, credit card processing machines, required dedicated telephone and power lines, modems, printers, and other computer-related accessory and peripheral equipment, as well as point-of-sale equipment and timers, compatible with our electronic collection and retrieval systems. You must implement high-speed internet service and a secure network with both anti-virus and anti-malware software, and a professionally managed firewall in your Restaurant. You must use only the software programs, network services, and Internet service providers we have approved. We also have the right to require proprietary operating systems and processes relative to pointof-sale, bookkeeping, operations, customer relationship management, financial information, inventory, workforce management, timeclocks, loyalty program hardware, compliant credit card processing machines, kitchen display systems and speed of service processes in connection with the operation of your Restaurant. Additionally, we have the right to require that you input and maintain in your computer the software programs, data and information that we may prescribe. Your estimated costs to purchase or lease the computer system will range from $59,000 to $100,000. If you elect to purchase any such computer-related hardware or equipment through us, we will purchase the hardware or equipment on your behalf from approved third-party vendors and we will resell such hardware or equipment to you at no markup; that is, you will reimburse us in full for our costs of such hardware or equipment. After your Restaurants opens, you and we will reconcile the total, actual purchase price of the hardware or equipment we purchased on your behalf and you will reimburse us for the amount of the purchase price.

We may require that you pay the subscription costs or other fees for this optional software, and any other software programs we may designate in the future.

Source: Item 10 — FINANCING (FDD page 31)

What This Means (2025 FDD)

Based on the 2025 Del Taco Franchise Disclosure Document, Del Taco does not directly offer financial assistance to franchisees. However, they may offer to purchase computer-related hardware or equipment on the franchisee's behalf from approved third-party vendors and resell it to the franchisee at no markup. The franchisee will then reimburse Del Taco for the full cost of the hardware or equipment. After the restaurant opens, the total purchase price will be reconciled, and the franchisee will reimburse Del Taco for the amount.

While Del Taco doesn't provide traditional financial aid, it does cover the cost of initial training instruction and required materials for the franchisee, their operating principal, restaurant manager, shift managers, and other approved employees. However, the franchisee is responsible for all other expenses related to training, including transportation, lodging, meals, wages, workers' compensation insurance, and trainee meals during training sessions.

Prospective franchisees should note that the estimated costs to purchase or lease the required computer system range from $59,000 to $100,000. While Del Taco may facilitate the purchase of this equipment, the franchisee ultimately bears the financial responsibility. It is important for potential franchisees to factor these costs into their overall investment and financing plans.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.