What is the specific range of the Development Fee for Del Taco, as stated in the table?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a developer must pay a Development Fee. This 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.
Del Taco earns the Development Fee upon the execution of the agreement, and the fee is non-refundable. However, upon the execution of a Franchise Agreement, 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.
This means that while the initial Development Fee is non-refundable, these amounts are later credited towards the franchise fees when the individual restaurant franchise agreements are signed. This structure incentivizes developers to proceed with opening multiple Del Taco locations within their designated area.