Where can I find information about the Del Taco Development Agreement in this document?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
Grant of Development Rights.
Del Taco hereby grants to the Developer, subject to the terms and conditions of this Agreement and as long as the Developer complies with this Agreement and all other agreements with Del Taco, limited exclusive Development Rights for Restaurants identified on Exhibit B.
The Developer shall have limited exclusive rights to develop Restaurants—that is, Del Taco will not establish, or grant franchises for others to establish, Del Taco Restaurants—in the Development Area for the term of this Agreement.
The Developer shall submit Site Approval Packages and shall develop and open the total number of Restaurants set forth on and in accordance with the Development Schedule.
This Agreement is not a franchise agreement and does not grant the Developer any right to use the Del Taco System or any part of the Del Taco System.
The Developer shall have no right under this Agreement to license others to use the Del Taco System or any part of this Del Taco System.
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.
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 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.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, information regarding the Development Agreement can be found in Item 23, which is titled "RECEIPTS".
Item 23 discusses several aspects of the Development Agreement, including the grant of development rights, the term of the agreement, and the associated fees. Specifically, Del Taco grants the developer limited exclusive development rights for restaurants identified on Exhibit B, as long as the developer complies with the agreement. The agreement is not a franchise agreement and does not grant the developer any right to use the Del Taco system. The term of the agreement expires upon the required opening date for the last restaurant on the development schedule.
The fees associated with the Development Agreement include a non-refundable Development Fee of $35,000 for the first restaurant and $10,000 for each additional restaurant, payable upon execution of the agreement. Upon the execution of a Franchise Agreement, Del Taco will credit $35,000 for the first restaurant and $10,000 for each subsequent restaurant towards the initial franchise fee. The Development Agreement also outlines the obligations and responsibilities of the developer, including site acquisition, construction, and compliance with applicable laws and regulations.