What is the fee associated with the Development Agreement for Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Term. This Agreement and all Development Rights shall expire immediately upon the required opening date for the last Restaurant set forth on the Development Schedule or the actual opening date for the last Restaurant, whichever first occurs, unless sooner terminated in accordance with the terms and conditions of this Agreement.
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- Time of Essence. Time is of the essence of this Agreement.
5. Fees. The Developer shall pay to Del Taco the following fees:
- (a) In consideration of the Development Rights granted in this Agreement, the Developer shall pay to Del Taco a fully non-refundable Development Fee of $35,000 for the first Restaurant scheduled for opening and $10,000 for each additional Restaurant scheduled for opening, payable upon execution and delivery by the Developer of this Agreement. As between Developer and Del Taco, Del Taco shall earn the
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a developer must pay a Development Fee for the rights granted in the Development Agreement. This fee is fully non-refundable.
The Development Fee is $35,000 for the first Del Taco restaurant scheduled for opening. For each additional restaurant scheduled for opening under the Development Agreement, the fee is $10,000. These fees are payable upon the execution and delivery of the Development Agreement by the developer.
Upon the execution of a Franchise Agreement for a specific restaurant, Del Taco will credit the Development Fee towards the initial franchise fee. Specifically, $35,000 will be credited for the first restaurant and $10,000 for each subsequent restaurant. The developer is responsible for paying the balance of the initial franchise fee for the second and each subsequent restaurant.
Del Taco earns the Development Fee upon the execution of the Development Agreement. The developer acknowledges that once a Franchise Agreement is executed for a restaurant, they are not entitled to a refund of any portion of these fees.