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Franchise Fee & Royalties: What Do I Get in Return?

Franchise Fee Royalties What Do I Get in Return

Are you interested in learning what you will receive in exchange for your franchise fee and ongoing royalties?

As a Del Taco Franchisee, you’ll be responsible for paying a variety of ongoing royalty fees along with your initial franchise fee.

In this article, we’ll highlight exactly what you get for your franchise fee and royalties at Del Taco.

What Is a Franchise Fee?

A franchisee fee is essentially a license for you to own and operate a franchise business. This is a one-time payment that gives you a license to run your franchise business for an agreed upon number of years.

Your franchise fee is the cost of entry for access to benefits like the franchisor’s brand, business systems, training, support, and existing customer base.

Paying your franchise fee gives you a license to go into business for yourself, but not necessarily by yourself.

How Much is the Del Taco Initial Franchise Fee?

If you purchase the rights to develop and operate a Del Taco Restaurant under a Franchise Agreement, you must pay us a Franchise Fee.

Our initial franchise fee for one Del Taco Restaurant is $35,000 plus a promotional fee of $10,000 due when you sign the franchise agreement.

If you plan to open multiple locations, you must pay the full franchise fee of $35,000 for the first restaurant plus a $10,000 deposit on the franchise fee for each additional restaurant.

These amounts will be applied toward the applicable initial franchise fees listed above. You will then pay the remaining balance of the franchise fee ($25,000 for the second and subsequent locations) as they open.

The promotional fee must be spent with the approval and coordination of our Marketing Department for the purpose of promoting your restaurant.

All of these fees are fully earned on the date they are received by Del Taco, and we have no obligation to refund them for any reason.

What Are the Ongoing Royalties at Del Taco?

Like most companies in the franchising industry, you’ll notice Del Taco has ongoing royalty fees.

Our ongoing royalties at Del Taco include:

  • 5% Royalty of Net Sales
  • 4% Marketing Fee of Net Sales

At Del Taco, both of the royalties are paid weekly by electronic funds transfer.

What Do I Get for My Franchise Fee and Royalties?

Paying your initial franchise fee and ongoing royalties grant you access to a wide variety of assets and services that will help you run your restaurants.

Here are a few of the items you’ll receive:

  • Use of the Del Taco® brand name, systems, logo, and store design.
  • A comprehensive Management Training Program designed to prepare you for daily operation of your restaurant.
  • Site selection support.
  • Construction & design support. Conceptual floor plans and site plans are provided. These must be sealed by an approved architect before submitting them to local government entities.
  • Step-by-step assistance through the process of new-store layout, ordering of equipment, furniture, and fixtures.
  • Support and training assistance in pre-opening and opening.
  • Ongoing support from: Franchise Business Consultants, Culinary & Innovation Team, and R&D. Plus, purchasing, distribution, and marketing support for your restaurants.

Paying your franchise fees and royalties will ensure you have the best possible resources to run your business and bring customers to your location.

Check Out These Additional Resources

We hope this article gave you a better understanding of what you receive in exchange for your franchise fees and royalties.

At Del Taco, we work with our franchisees every step of the way in order to get their restaurants up and running.

Here are some additional online resources you may like to check out:

If you have any questions, please feel free to contact our franchise sales and support team.