What is the potential range for on-site improvements for a nontraditional Del Taco restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Nontraditional Restaurants. If you are developing a nontraditional restaurant, certain categories of the identified costs may vary significantly from those disclosed above. We anticipate that at least the following expenditures will vary from those previously stated: The Franchise Fee will be $1,750 per year of the term of your Franchise Agreement. On-Site Improvements are likely to range from $0 to $500,000. On-Site Improvement costs will vary depending on whether exterior site area improvements will be pa
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 estimated cost for on-site improvements for a nontraditional restaurant can range from $0 to $500,000. These costs can vary significantly based on whether exterior site area improvements are part of the development. On-site improvements are defined as work occurring within the property or lease lines, including excavation, grading, paving, sidewalks, landscaping, trash enclosures, fences, retaining walls, drainage, utility work, and outdoor lighting.
The wide range in potential costs reflects the variability in site requirements and existing conditions. Factors influencing these costs include the size of the property, existing improvements, requirements from municipal or governing agencies, and agreements with landlords or sellers. For example, a location requiring extensive landscaping, significant grading, or substantial utility work will likely incur costs at the higher end of the range.
Prospective Del Taco franchisees should carefully evaluate potential sites for nontraditional restaurants, considering the existing site conditions and required improvements. Understanding these factors is crucial for accurately estimating the initial investment and ensuring the project's financial feasibility. Consulting with experienced contractors and local authorities can help in assessing these costs and planning accordingly.