What are the specific requirements for developing a Del Taco restaurant premises (Item 8), and how do these requirements relate to the estimated initial investment (Item 7)?

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1. These initial investment figures are based on new restaurant development costs to open Fresh Flex prototypical buildings in 2023 and 2024. Del Taco has one (1) prototypical building portfolio available consisting of three (3) different prototypical building types that are available for siteadaptation and use by franchise operators that have been designed to support varying site conditions such as property size, property shape, and preferred building orientation. The Fresh Flex portfolio building types range from 1,152 square feet to 2,304 square feet. All portions of the initial investment paid to Del Taco are fully earned by Del Taco when paid and are not refundable. Whether any third party will refund any costs will depend on the third party involved. Your financing cost may affect your total investment significantly. You may, or may not, incur all the costs identified, and you may incur other costs that are specific to your project. You should review the amounts listed above carefully with a business advisor before making any decision to purchase the franchise. The actual cost can vary largely depending on the site-specific conditions and requirements for each location.

• 1. You pay the Franchise Fee and Promotional Fee when you sign the Franchise Agreement.
• 1. The cost of land will vary widely, depending on size and location of the property and whether you purchase or own the land or enter into a lease arrangement. The size of the property necessary to develop a new Del Taco restaurant can vary greatly depending upon, but not limited to, the size of the building constructed, desired drive-thru lane configuration, appliable development code requirements and zoning restrictions, as well as other influences such as access and parking agreements with adjoining properties, landlord or other third-party requirements. Typical physical site criteria would include approximately 25,000 to 40,000 square feet, minimum of approximately 130 feet of frontage depending on building orientation, adequate access into and out of the property, ability to accept deliveries from an approximately 75' tractor-trailer truck, and a dedicated parking area to accommodate 14 to 32 parking spaces depending on site requirements.
• 1. Consulting costs will vary based on the documentation necessary to obtain all of the project's development-related approvals which may include, but are not limited to, landlord, third party, zoning, planning commission, building/municipal, signage, health, fire, and other agency approvals. Consultants typically hired by you may include, architects, permit expediters, zoning consultants, landscape architects, structural engineers, utility designers, fire sprinkler engineers, land surveyors, geotechnical engineers, mechanical, electrical, and plumbing engineers, outside project managers, and construction testing consultants. Consulting costs do not include the actual fees paid for permits and approvals to municipal and other governmental agencies, nor does it include the fees assessed by the applicable utility service providers.
• 1. Environmental assessment costs tend to be site-specific in nature and can vary based on where the property is located, a property's former use(s), the use(s) of neighboring properties, and a property's existing conditions. A "Phase One" assessment involves title research and can cost approximately $2,500 to $4,000. The cost of a "Phase Two" assessment typically varies because some amount of borings, well sampling, and invasive testing may need to be completed on the property and will typically range from $10,000 to $34,000. "Phase Three" assessments involve the development of a clean-up mitigation plan to address on-site contamination. By their site-specific nature, the costs for a Phase Three will vary significantly, and these costs have been excluded.
• 1. On-site improvements are those work scope items that occur within the bounds of the property or lease lines and include excavation, grading, sub-surface stabilization, paving, sidewalks, landscaping, trash enclosure structures, fences, retaining walls, drainage structures, utility work, and outdoor lighting, among other things. On-site costs can vary significantly depending on the size of the property, the improvements that may already exist, the requirements placed upon the project by the municipal or other governing agencies, and agreements made with the landlord, seller, or developer as part of securing the property. Construction costs can vary significantly based upon the size of the property, materials and methods specified in the construction documents, as well as other geographical, regional, and municipal influences. Off-site development costs, if any, are by nature site-specific and have been excluded.