Is the Del Taco Development Agreement dependent on any other agreements or conditions?

According to Del Taco's 2025 Franchise Disclosure Document, the Development Agreement is contingent upon the developer complying with the agreement itself and all other agreements with Del Taco. Specifically, the grant of development rights is subject to the terms and conditions outlined in the Development Agreement. The developer's adherence to the development schedule is crucial, as failure to meet the schedule can result in the loss of development incentives.

Del Taco's written approval of a proposed site and the construction plans are prerequisites for the company to send the developer a Franchise Agreement. The developer must then execute and return the Franchise Agreement, along with all due payments, within 10 days of receipt. Failure to do so gives Del Taco the right to revoke site approval, preventing the developer from opening a restaurant at that location. The developer cannot begin construction until Del Taco approves the site without conditions, the developer secures the right to use the site (through purchase or lease) and obtains all necessary permits, and Del Taco approves the developer's general contractor and architect.

Furthermore, to qualify for the Development Incentive Program, the developer and its affiliates must remain fully compliant with the terms of the Development Agreement, Franchise Agreement, and any other agreements with Del Taco and its affiliates. Breaching any of these agreements can lead to the developer immediately owing Del Taco the amount of any reduction in the Initial Franchise Fees or Royalty Fees that they may have received as part of the incentive program. This highlights the interconnectedness of these agreements and the importance of adhering to all terms to maintain the benefits of the Development Incentive Program.

Del Taco also retains significant control over site selection. The company can refuse to approve a site if it doesn't meet their criteria or if it's too close to another Del Taco restaurant. As a condition of site review, Del Taco may require the developer to pay for a trade area survey analysis, and depending on the results, may reject the site or require a business impact payment to affected franchisees. This demonstrates that the Development Agreement is not only dependent on other formal agreements but also on Del Taco's ongoing approvals and policy adherence.