Can Del Taco request quarterly Profit and Loss Statements from franchisees?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the Sales Reports required pursuant to Section 3.5, Franchisee shall submit to Del Taco a copy of their Profit and Loss Statement for each restaurant on an annual basis by March of the following year, and on a quarterly basis as requested by Del Taco.
Additionally, Franchisee shall provide such other forms, reports, records, information, and data as and when Del Taco may reasonably designate, in the form and format, and at the times and places reasonably required by Del Taco, upon request and as specified from time to time in the Manuals or otherwise in writing, restated in accordance with Del Taco's financial reporting periods, consistent with Del Taco's then current financial reporting periods and accounting practices and standards.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco can request quarterly Profit and Loss Statements from its franchisees. Specifically, franchisees must submit a copy of their Profit and Loss Statement for each restaurant on an annual basis by March of the following year.
In addition to the annual submission, Del Taco retains the right to request these statements on a quarterly basis. This allows Del Taco to monitor the financial performance of its franchise locations more closely and identify any potential issues or areas for improvement in a timely manner.
Furthermore, franchisees are obligated to provide any other forms, reports, records, information, and data that Del Taco may reasonably designate. These must be in the format, and at the times and places reasonably required by Del Taco, upon request and as specified from time to time in the Manuals or otherwise in writing, restated in accordance with Del Taco's financial reporting periods, consistent with Del Taco's then current financial reporting periods and accounting practices and standards. This comprehensive reporting requirement ensures that Del Taco has access to all the necessary information to support its franchisees and maintain the integrity of the Del Taco brand.