Is there a deadline associated with the payment of the Del Taco Advertising Fee?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee shall pay all fees and charges incurred under this Agreement to Del Taco (by electronic funds transfer, check, pre-arranged draft, sweep of Licensee's bank account or by any other form that Del Taco designates) within 30 days from the date of receipt of an invoice from Del Taco. Licensee shall perform those acts and sign and deliver those documents as may be necessary to accomplish payment by any method selected by Del Taco. If Licensee fails to make any payment required under this Agreement within 30 days after the date such payment becomes due and payable, Del Taco may, in its sole discretion, (i) assess a late fee in an amount equal to the lesser of 1.5% per month or the maximum rate permitted by law on the delinquent amount; and/or (ii) terminate this Agreement effective immediately upon receipt of notice of termination.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees must pay all fees and charges, which would include advertising fees, within 30 days from the date of receiving an invoice from Del Taco. These payments can be made through electronic funds transfer, check, pre-arranged draft, sweep of the franchisee's bank account, or any other method that Del Taco designates.
If a franchisee fails to make any payment within this 30-day period, Del Taco has the discretion to impose a late fee. This late fee is the lesser of 1.5% per month or the maximum rate permitted by law on the outstanding amount. Additionally, Del Taco can terminate the agreement immediately upon providing notice of termination if the franchisee does not adhere to the payment terms.
This policy ensures that Del Taco franchisees are expected to maintain timely payments of all fees, including advertising fees, and provides Del Taco with remedies for late payments, including late fees and potential termination of the franchise agreement. Prospective franchisees should be aware of these payment terms and ensure they can meet these obligations to avoid penalties or termination.