How much is the non-refundable Development Fee for each additional Del Taco restaurant scheduled for opening after the first one?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
re 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.
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- 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
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a developer who enters into a Development Agreement with Del Taco must pay a non-refundable Development Fee. The initial restaurant's fee is $35,000. For each additional Del Taco restaurant scheduled for opening after the first one, the developer must pay $10,000. This fee is payable upon the execution and delivery of the Development Agreement.
Del Taco earns the Development Fee upon the execution of the agreement and has no obligation to refund any portion of it. However, 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 for each of those restaurants. The developer is responsible for paying the balance of the initial franchise fee for the second and each subsequent restaurant.
It's important to note that these development rights are limited and exclusive to the restaurants identified on Exhibit B of the Development Agreement. The agreement itself is not a franchise agreement and does not grant the developer any rights to use the Del Taco System until a Franchise Agreement is executed for each location. The developer also cannot license these rights to others.