What is the minimum number of development commitments for new Del Taco franchisees under the Development Agreement?

According to Del Taco's 2025 Franchise Disclosure Document, the estimated initial investment chart reflects the minimum number of two development commitments for new franchisees. This means that when a new franchisee enters into a Development Agreement with Del Taco, they are committing to open at least two Del Taco restaurants.

This commitment has significant financial implications for the franchisee. The FDD states that the estimated initial investment covers the development of at least two restaurants. This suggests that franchisees need to have sufficient capital to fund the establishment of multiple locations right from the start. The total estimated initial investment for two Del Taco restaurants ranges from $2,924,400 to $6,572,000, excluding the franchise fee.

Prospective franchisees should carefully consider their financial capacity and business plan to ensure they can meet this minimum development requirement. It is crucial to conduct thorough market research and secure adequate funding before signing the Development Agreement with Del Taco. Franchisees should also consult with financial and legal advisors to fully understand the obligations and risks associated with developing multiple franchise locations.