factual

What does the range given for business permits and miscellaneous deposits for a Del Taco franchise include?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

The range given provides our best estimate of the costs you will incur for business permits and miscellaneous deposits, including initial utility deposits, but not a lease deposit (listed separately above).

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 range for business permits and miscellaneous deposits includes initial utility deposits, but specifically excludes lease deposits, which are listed separately. This means that the figure a prospective franchisee sees in the initial investment table for 'Business Permits and Miscellaneous Deposits' will cover expenses like permits required to operate the Del Taco restaurant and deposits needed to establish utility services such as electricity, gas, and water.

It is important to note that the FDD clearly states that lease deposits are not included in this particular estimate. Franchisees should budget separately for lease deposits, as these can be substantial depending on the location and lease terms. The cost of land itself is also not included in this estimate.

Prospective Del Taco franchisees should carefully review the initial investment table and notes in Item 7 of the FDD, and consult with a business advisor to understand all potential costs associated with opening a franchise. Understanding exactly what is and is not included in each estimated cost is crucial for accurate financial planning.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.