When is the Del Taco Development Fee due?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of payment | When Due | To Whom Paid | |
|---|---|---|---|---|---|
| Development Fee | $45,000 | $45,000 | Lump Sum | Due when you sign the Development Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–28)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the Development Fee, which ranges from $45,000 to $45,000, is due when you sign the Development Agreement. This fee is paid to Del Taco. It's a one-time, lump-sum payment required to secure the rights to develop Del Taco restaurants in a specific area.
This upfront payment is non-refundable, so prospective franchisees should carefully evaluate their development plans and financial capabilities before signing the Development Agreement. This is a common practice in franchising, as the fee compensates the franchisor for granting the development rights and providing initial support.
Understanding the terms and conditions of the Development Agreement, including the development schedule and any performance requirements, is crucial. It is also important to note that the initial investment under the Development Agreement will vary depending on the number of Del Taco Restaurants you develop.