When is the Del Taco renewal fee due?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Renewal Fees | Greater of $35,000 or the then-current initial franchise fee for new franchisees, plus the then-current Promotional Fee (currently $10,000) | On execution of the successor franchise agreement | You must pay the Renewal Fee and Promotional Fee in addition to any remodel costs required. |
Source: Item 6 — OTHER FEES (FDD pages 18–21)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the renewal fee is due upon the execution of the successor franchise agreement. The renewal fee is the greater of $35,000 or the then-current initial franchise fee for new franchisees, plus the then-current Promotional Fee (currently $10,000).
In addition to the renewal and promotional fees, franchisees should also be prepared to cover any remodel costs that Del Taco may require as a condition of renewal. This could represent a significant additional expense, so it's important to discuss potential remodel requirements with Del Taco well in advance of the renewal date.
Franchise agreements typically include renewal options, allowing franchisees to extend their business operations. Renewal fees are standard in the franchising industry and compensate the franchisor for the continued use of their brand, systems, and support. The amount of the renewal fee can vary widely depending on the franchise system and the specific terms of the franchise agreement.