Does the Del Taco Development Agreement address the franchisee's responsibility for securing financing?

According to Del Taco's 2025 Franchise Disclosure Document, the Development Agreement places the responsibility of securing financing on the developer. Specifically, the developer is solely responsible for the acquisition, development, and construction of a Del Taco Restaurant on the approved site. This includes securing the necessary funds for these activities.

Del Taco does not offer any financing to the developer. The developer must obtain the right to use the site, either by purchase or lease, and provide a fully executed copy of the lease or asset purchase agreement to Del Taco. This implies that the developer needs to have secured the necessary financing to either purchase or lease the site before construction can begin.

Furthermore, the developer must obtain all necessary permits, governmental approvals, and other necessary rights to construct, maintain, and operate a Del Taco Restaurant on the approved site. These obligations underscore the developer's responsibility to manage all financial aspects related to site acquisition and development. This is a common practice in franchising, as the franchisee typically bears the financial burden of establishing their location.