Is any part of the initial investment refundable for a Del Taco Development Agreement?

According to Del Taco's 2025 Franchise Disclosure Document, no part of the initial investment for a Development Agreement is refundable. The document states this explicitly within the context of the estimated initial investment required under the Development Agreement. This means that once a prospective franchisee pays any portion of the initial investment to Del Taco, those funds are non-refundable.

However, the FDD also notes that whether any third party will refund any costs will depend on the third party involved. This suggests that while Del Taco itself will not refund any part of the initial investment, it may be possible to obtain refunds from third-party vendors or service providers involved in the development process, depending on their individual policies and agreements. It is important for prospective franchisees to clarify the refund policies of all third-party vendors they engage with during the development of their Del Taco restaurants.

This non-refundable policy is a significant factor for potential Del Taco franchisees to consider. It highlights the importance of thorough due diligence and careful planning before entering into a Development Agreement. Franchisees should consult with legal and financial advisors to fully understand the financial implications and risks associated with this policy. They should also conduct thorough market research to assess the viability of their planned Del Taco locations and ensure they have sufficient capital to cover the entire initial investment without relying on potential refunds.