For a Del Taco franchise, what is the minimum estimated expenditure for Building Improvements?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Paid | |
|---|---|---|---|---|---|
| Franchise Fee2 | $35,000 | $35,000 | Lump Sum | (Note 2) | Us |
| Promotional Fee2 | $10,000 | $10,000 | Lump Sum | (Note 2) | Us |
| Land3 | Not Included | Not Included | Not Included | Not Included | Not Included |
| Fee for Architectural and Engineering and Related Consultant Services4 | $27,000 | $124,000 | As Agreed | As Agreed | Consultants |
| Environmental | $2,500 | $34,000 | As | As Agreed | Consultants |
| Assessment5 | Agreed | ||||
| On-site Improvements6 | $0 | $500,000 | As Agreed | As Agreed | Contractors, Vendors, Suppliers, or Owner |
| Building Improvements7 | $370,000 | $800,000 | As Agreed | As Agreed | Contractors, Vendors, Suppliers, or Owner |
| Furnishings, Fixtures and Equipment8 | $250,000 | $750,000 | As Agreed | As Agreed | Vendors & Suppliers |
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 estimated initial investment for building improvements ranges from $370,000 to $800,000. These building improvements encompass the necessary work to develop the entire building structure, including the foundation, framing, mechanical, electrical, and plumbing systems. It also covers masonry and other exterior finishes, metalwork, roofing, insulation, glazing, and all interior floor, wall, and ceiling finishes, lighting, and painting.
Del Taco compiled these estimates based on their experience developing prototypical buildings without unusual conditions like special architecture or finishes. However, these estimates do not include costs for building permits or on-site or off-site improvements. Construction costs can vary significantly based on the property size, materials, methods specified in the construction documents, and geographical, regional, and municipal influences.
For new restaurant development projects involving the conversion and remodel of an existing building, the costs are not included in this estimate. These projects will have their own site-specific scope of work and cost structure to adapt the existing building designs to conform to the brand image and operational standards of Del Taco. Franchisees should consider these potential variations and consult with Del Taco and contractors to obtain accurate estimates for their specific location and building type.