Is there a deadline associated with the payment of the Del Taco Initial Franchise Fee?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchise Agreement. Subject to Del Taco's written approval of a proposed site and the construction plans for the Restaurant proposed for development at the site, Del Taco shall send the Developer a Franchise Agreement for the proposed site using the then-current form of Franchise Agreement being offered to new Del Taco franchisees. Prior to the commencement of construction of the Restaurant, and within 10 days (or any longer time required by law) after the receipt of the Franchise Agreement from Del Taco for an approved site, the Developer shall execute the Franchise Agreement and return it to Del Taco, together with all payments then due Del Taco. Promptly upon Del Taco's receipt of the properlyexecuted Franchise Agreement and all payments then due Del Taco, Del Taco shall execute the same and return a copy to the Developer. If Del Taco does not receive the properly-executed Franchise Agreement and all payments than due Del Taco within that 10-day period, Del Taco shall have the right to revoke its approval of the proposed site and, if Del Taco revokes its approval, the Developer shall have not have any right to open a Restaurant on that site.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a developer seeking to open a Del Taco restaurant must adhere to specific timelines regarding the Franchise Agreement. The developer is required to execute and return the Franchise Agreement to Del Taco, along with all due payments, within 10 days of receiving it from Del Taco for an approved site. This 10-day period may be extended if a longer time is required by law.
If the properly executed Franchise Agreement and all required payments are not received by Del Taco within the specified timeframe, Del Taco reserves the right to revoke its approval of the proposed site. Should Del Taco revoke its approval, the developer forfeits the right to open a Del Taco restaurant at that particular site.
This stipulation underscores the importance of prompt action on the franchisee's part once the Franchise Agreement is received. Failing to meet the 10-day deadline (or any legally mandated extension) can result in the loss of the approved site and the inability to proceed with opening a Del Taco restaurant at that location. This requirement ensures that developers are serious about moving forward with their Del Taco franchise and can meet the necessary obligations in a timely manner.