What is the subject matter of the Del Taco Development Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
ssion of Site Approval Packages and the development of Restaurants as set forth on Exhibit B to this Agreement.
- (g) "Restaurant" or "Restaurants" shall mean one or more Del Taco restaurants.
- (h) "Site Approval Package" shall mean the information and forms required by Section 7 of this Agreement.
- (i) "Alternative Point(s) of Distribution" shall mean those locations as further defined in Section 13(c) of this Agreement.
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- Grant of Development Rights. Del Taco hereby grants to the Developer, subject to the terms and conditions of this Agreement and as long as the Developer complies with this Agreement and all other agreements with Del Taco, limited exclusive Development Rights for Restaurants identified on Exhibit B. The Developer shall have limited exclusive rights to develop Restaurants—that is, Del Taco will not establish, or grant franchises for others to establish, Del Taco Restaurants—in the Development Area for the term of this Agreement. The Developer shall submit Site Approval Packages and shall develop and open the total number of Restaurants set forth on and in accordance with the Development Schedule. This Agreement is not a franchise agreement and does not grant the Developer any right to use the Del Taco System or any part of the Del Taco System. The Developer shall have no right under this Agreement to license others to use the Del Taco System or any part of this Del Taco System.
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- Term. This Agreement and all Development Rights shall expire 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
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, the Development Agreement grants the developer limited exclusive rights to develop Del Taco restaurants within a specific area. Del Taco will not establish or grant franchises to others for restaurants in the designated Development Area during the agreement's term, provided the developer complies with the agreement's terms. The developer is required to submit Site Approval Packages and adhere to the Development Schedule for opening restaurants.
It is important to note that the Development Agreement is not a franchise agreement itself and does not grant the developer the right to use the Del Taco System. The developer also cannot license others to use the Del Taco System under this agreement. The agreement's term expires upon the opening date of the last restaurant on the Development Schedule or the required opening date, whichever comes first, unless terminated earlier.
The developer must pay Del Taco a non-refundable Development Fee of $35,000 for the first restaurant and $10,000 for each additional restaurant upon executing the agreement. These fees are credited towards the initial franchise fee when the developer executes a Franchise Agreement for each restaurant. Time is of the essence in this agreement, meaning deadlines and schedules must be strictly followed.
In summary, the Del Taco Development Agreement outlines the terms and conditions under which a developer can secure the exclusive right to develop multiple Del Taco restaurants within a defined area, subject to meeting specific development schedules and paying the required fees. This agreement precedes and is separate from the actual franchise agreement for each individual restaurant.