According to Del Taco's 2025 Franchise Disclosure Document, the Development Fee is paid in exchange for the Development Rights granted to the developer under the Development Agreement. The developer pays a non-refundable fee of $35,000 for the first restaurant and $10,000 for each additional restaurant scheduled to open. This fee is payable upon the execution and delivery of the Development Agreement.

This fee compensates Del Taco for granting the developer the exclusive right to develop restaurants within a specific area, preventing Del Taco from establishing or franchising other Del Taco restaurants in that area during the agreement's term. The agreement outlines a development schedule that the developer must adhere to, including submitting site approval packages and opening the agreed-upon number of restaurants.

Upon the execution of a Franchise Agreement for a specific restaurant, Del Taco will credit the Development Fee towards the initial franchise fee. Specifically, $35,000 will be credited for the first restaurant and $10,000 for each subsequent restaurant. The developer is responsible for paying the remaining balance of the initial franchise fee for the second and subsequent restaurants. This credit mechanism reduces the upfront costs associated with the franchise fee, incentivizing developers to proceed with opening the restaurants as planned.

If a developer is unable to meet the development schedule, they may request a twelve-month extension, provided they are in full compliance with all agreements with Del Taco. To obtain an extension, the developer must provide at least six months' advance written notice and pay an Extension Fee of $5,000 times the number of development deadlines they wish to extend. This Extension Fee is also credited towards the Franchise Fee upon execution of the Franchise Agreement, but is otherwise non-refundable.