What is the range of the Development Fee for a Del Taco 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 Development Fee upon the execution of this Agreement and shall not have any obligation to refund any portion of the Development Fee.
- (b) Upon the execution by the Developer of a Franchise Agreement, Del Taco shall credit from the Development Fee $35,000 for the first Restaurant scheduled for opening and $10,000 for each subsequent Restaurant scheduled for opening towards the initial franchise fee for each of those Restaurants. The Developer shall pay the balance of the initial franchise fee for the second and each subsequent Restaurant scheduled for opening. The Developer acknowledges that, once it has executed a Franchise Agreement for a Restaurant, the Developer will not have the right to a refund of any portion of the foregoing fees.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a Development Fee is required when a developer is granted rights to develop Del Taco restaurants in a specific area. The Development Fee is $35,000 for the first restaurant scheduled for opening and $10,000 for each additional restaurant scheduled for opening. This fee is payable upon the execution and delivery of the Development Agreement by the developer and is fully non-refundable to Del Taco.
However, upon the execution of a Franchise Agreement for a specific restaurant, Del Taco will credit $35,000 from the Development Fee 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. The developer acknowledges that once a Franchise Agreement is executed, no portion of these fees is refundable.
If a developer cannot meet the development schedule, they may request a twelve-month extension of one or more development deadlines, provided they and their affiliates are in full compliance with all agreements with Del Taco. This extension is subject to Del Taco's approval, and for each approved twelve-month extension, the developer must pay an Extension Fee of $5,000 times the number of development deadlines they wish to extend. This Extension Fee is also non-refundable but will be credited towards the Franchise Fee for the subject location upon execution of the applicable Franchise Agreement.