What is the non-refundable Development Fee for the first Del Taco restaurant scheduled for opening under the Development Agreement?
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 must pay a non-refundable Development Fee. For the first Del Taco restaurant scheduled for opening, this fee is $35,000. This fee is payable upon the execution and delivery of the Development Agreement by the developer.
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 the $35,000 Development Fee towards the initial franchise fee for the first restaurant.
This means that while the initial $35,000 is non-refundable in cash, it essentially acts as a pre-payment towards the franchise fee once the franchisee moves forward with opening the Del Taco restaurant. This is a fairly standard practice in franchising, where development fees are often credited towards the initial franchise fee.