What is the fee associated with the Initial Franchise for Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Development Fee upon the execution of this Agreement and shall not have any obligation to refund any portion of the Development Fee.
- (b) Upon the execution by the Developer of a Franchise Agreement, Del Taco shall credit from the Development Fee $35,000 for the first Restaurant scheduled for opening and $10,000 for each subsequent Restaurant scheduled for opening towards the initial franchise fee for each of those Restaurants. The Developer shall pay the balance of the initial franchise fee for the second and each subsequent Restaurant scheduled for opening. The Developer acknowledges that, once it has executed a Franchise Agreement for a Restaurant, the Developer will not have the right to a refund of any portion of the foregoing fees.
- (c) Notwithstanding any provision of the Agreement to the contrary, if Developer is not able to timely meet its Development Schedule, and provided that Developer and its affiliates are in full compliance with all agreements with Del Taco, Developer may request a twelve-month extension of one or more of the development deadlines in the Development Schedule, which extension Del Taco may grant or deny at its sole option. To request an extension of a development deadline, Developer must provide Del Taco at least six months' advance written notice.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
Based on the 2025 Del Taco Franchise Disclosure Document, the document mentions a credit towards the initial franchise fee under specific conditions for developers. Specifically, if a developer executes a Franchise Agreement, Del Taco will credit $35,000 from the Development Fee for the first restaurant scheduled to open. For each subsequent restaurant, $10,000 will be credited towards the initial franchise fee.
However, this credit is contingent on the developer meeting the development schedule. If the developer fails to meet the schedule but remains compliant with all agreements, they can request a twelve-month extension. This extension requires advance written notice and payment of an Extension Fee, calculated as $5,000 times the number of development deadlines the developer wishes to extend. This Extension Fee can then be credited towards the Franchise Fee upon execution of the applicable Franchise Agreement.
It's important to note that these credits and incentives are specifically tied to development agreements and adherence to development schedules. The document does not explicitly state the standard initial franchise fee amount, only the potential credits that can be applied under certain conditions. A prospective franchisee should inquire directly with Del Taco about the full initial franchise fee and all applicable terms.