Does Del Taco reserve the right to collect all fees and payments due by a Del Taco franchisee by EFT?

According to Del Taco's 2025 Franchise Disclosure Document, Del Taco retains the right to collect all fees and payments due from franchisees through Electronic Funds Transfer (EFT).

Specifically, franchisees are generally required to make payments via EFT. The FDD states that payments required by Sections 3.3 and 3.4, which are based on Net Sales, must be paid and submitted by electronic funds transfer to be received by Del Taco by the 15th of each month. Franchisees must complete an EFT authorization form for direct debits from their business bank account. Del Taco's policies may also require franchisees to ensure sufficient funds are available in their account by a specific date, as the EFT process might sweep the account the day before the actual payment date.

Del Taco may also use the EFT process to obtain payment for other obligations. For example, if a franchisee fails to promptly pay suppliers, Del Taco may pay the supplier on behalf of the franchisee and then obtain reimbursement through the EFT process. Similarly, Del Taco may elect to use the EFT provisions of Section 3.5 to collect payments for re-inspection fees and costs if a franchisee fails to make such payments within 15 days of receiving an invoice. This ensures Del Taco can efficiently manage and collect payments owed by franchisees, while also providing a mechanism to cover certain franchisee obligations to third parties when necessary.