Besides the development fee, do all other provisions of the Del Taco Development Agreement remain in effect?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Now, therefore, for and in consideration of the covenants and agreements set forth in this Addendum and in the Development Agreement, the parties hereby agree as follows:
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- Development Fee. Notwithstanding the provisions of Section 5 of the Development Agreement to the contrary, the development fee shall become due, on a pro rata basis based on the number of Del Taco Restaurants scheduled for development within the Territory, only upon the opening of each licensed Del Taco Restaurant built within the Territory.
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- Other Provisions. Except as expressly modified by this Addendum, all of the other provisions of the Development Agreement shall remain in full force and effect.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, in South Dakota, the addendum to the Development Agreement specifies that, with one exception, all other provisions of the Development Agreement remain in full effect. The exception is that the development fee becomes due on a pro rata basis, based on the number of Del Taco Restaurants scheduled for development within the territory, only upon the opening of each licensed Del Taco Restaurant built within the Territory.
This means that while the payment schedule for the development fee is altered, all other aspects of the agreement, such as obligations, responsibilities, and operational guidelines, remain unchanged. This ensures that the franchisee is still bound by the original terms of the Development Agreement, providing a consistent framework for the development of Del Taco restaurants.
However, prospective Del Taco franchisees should carefully review the entire Development Agreement and the addendum to fully understand their obligations and rights. It's also advisable to seek legal counsel to ensure a comprehensive understanding of the agreement and its implications.