Will Del Taco refund any amounts paid upon the expiration or termination of the Del Taco Franchise Agreement?

According to Del Taco's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, Del Taco will not refund any amounts paid. This policy applies regardless of the reason for termination or expiration. This means that any fees paid to Del Taco, such as the initial franchise fee or promotional fees, are non-refundable.

This no-refund policy is a standard practice in the franchise industry, as initial fees and other payments are typically used to cover the franchisor's administrative, training, and support costs. Franchisees should be aware that they will not receive any refunds of fees paid to Del Taco, even if the franchise agreement is terminated early.

Specifically, the initial franchise fee of $35,000 and the promotional fee of $10,000 are non-refundable. The promotional fee is intended to be used for promoting the restaurant within a year of opening, and any unspent portion of the fee is forfeited to Del Taco for their general advertising or marketing programs. This policy underscores the importance of carefully considering the terms of the franchise agreement and the potential risks involved before investing in a Del Taco franchise.