What is the maximum amount for the Development Fee payable to Del Taco?
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 is a flat $45,000. This fee is paid as a lump sum when you sign the Development Agreement with Del Taco.
This fee is non-refundable, meaning that once paid, Del Taco does not return the money, regardless of whether the franchisee successfully opens a location. This is a standard practice in franchising, as the fee compensates the franchisor for the initial work involved in evaluating and setting up a new franchisee.
Prospective franchisees should factor this fee into their initial investment costs and understand that it is a sunk cost. It is important to carefully review the Development Agreement and understand the obligations and timelines associated with developing a Del Taco restaurant to avoid losing this initial investment.