When is the royalty fee due for a Del Taco franchise?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty 2 | 5% of net sales | Payable monthly by electronic funds transfer by the fifteenth (15th) day of each month, based on the Net Sales for the preceding month | Net sales include all revenue from the Restaurant, except for refunds and sales or similar taxes. |
| Royalty for Games and Devices | 40% of net sales from such games and devices | Payable monthly by electronic funds transfer by the fifteenth (15th) day of each month, based on the Net Sales for the preceding month | “Games and Devices” means coin, token, card or internet devices like pay telephones, cash, credit or debit machines (including automated teller machines), newspaper stands, slot machines, wireless, or similar machines. |
Source: Item 6 — OTHER FEES (FDD pages 18–21)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the standard royalty fee, which is 5% of net sales, is payable monthly. Specifically, it is due by electronic funds transfer by the fifteenth (15th) day of each month, and this payment is based on the net sales from the preceding month. Net sales include all revenue from the Restaurant, excluding refunds and sales or similar taxes.
Del Taco also charges a royalty for games and devices, which is 40% of net sales from such games and devices. This royalty is also payable monthly by electronic funds transfer by the fifteenth (15th) day of each month, based on the Net Sales for the preceding month. The FDD defines “Games and Devices” as coin, token, card or internet devices like pay telephones, cash, credit or debit machines (including automated teller machines), newspaper stands, slot machines, wireless, or similar machines.
It's important for prospective franchisees to note that these royalty payment terms are standard, but can be impacted by specific programs such as the Development Incentive Program, which offers reduced royalty fees for a certain period. Also, the franchise agreement allows Del Taco to recover damages for loss of royalty fees if the agreement is terminated for any of the reasons described in Section 15 of the agreement.