Is there a deadline associated with the payment of the Del Taco Development Fee?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
- (d) Any amount owing from the Developer to Del Taco pursuant to this Section 5, if not paid when due, shall bear interest at the rate of seven percentage points in excess of the prime rate per annum, subject to any applicable limits imposed by California law, after the due date until paid.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the Development Fee is due upon execution and delivery of the Development Agreement. The Development Fee is $35,000 for the first restaurant and $10,000 for each additional restaurant. This fee is fully non-refundable.
Del Taco earns the Development Fee upon the execution of the Development Agreement. Del Taco does not have any obligation to refund any portion of the Development Fee.
If the Developer does not pay any amount owed to Del Taco when due, the amount will bear interest at a rate of seven percentage points in excess of the prime rate per annum, subject to any applicable limits imposed by California law, after the due date until paid.