Under what condition is the Del Taco transfer fee higher than $5,000?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | $5,000 | Prior to our consent for the transfer | Payable in connection with any transfer. For securities offerings, the fee may be more and must cover our reasonable costs and expenses to review the offering. |
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 transfer fee is $5,000. However, this fee may increase under specific circumstances related to securities offerings.
Specifically, if a Del Taco franchisee intends to transfer their franchise through a securities offering, the transfer fee may exceed $5,000. In such cases, the fee will be determined based on Del Taco's reasonable costs and expenses incurred to review the offering. This implies that the complexity and extent of the review required by Del Taco will directly influence the final transfer fee amount.
This condition is important for prospective franchisees to understand, especially if they foresee a potential need to transfer their franchise ownership through methods involving securities offerings. It is advisable for franchisees considering such a transfer to communicate with Del Taco early in the process to get an estimate of the potential review costs and associated transfer fees.