Are there any financial thresholds a franchisee must meet to qualify for a Del Taco Development Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, the Developer shall submit financial information relating to the Developer's then-current financial condition and the expected development costs and projected results of operation of the Restaurant proposed for development on the proposed site.
Del Taco shall have the right to refuse to approval any site if (i) the site does not conform with general site selection criteria Del Taco establishes from time to time, including, without limitation, demographic characteristics, traffic patterns, parking accommodations, character of the neighborhood, competition from other businesses, or any reasonable conditions as determined by Del Taco in its sole discretion; (ii) the Developer fails to meet Del Taco's then-current financial and operational requirements for developers, franchisees and/or the development of Restaurant; or (iii) if the Developer is in default under this Agreement or any other agreement with Del Taco.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a prospective developer must submit financial information relating to their current financial condition and the expected development costs and projected results of operation of the restaurant proposed for development on the proposed site. Del Taco has the right to refuse approval of any site if the developer fails to meet Del Taco's then-current financial and operational requirements for developers, franchisees, and/or the development of a restaurant.
This means that Del Taco evaluates the financial stability and capability of the developer to undertake the project. This includes assessing their current financial standing and the projected financial performance of the proposed Del Taco restaurant.
For a prospective Del Taco developer, this implies that they need to be prepared to provide detailed financial information to Del Taco for review. Meeting these financial requirements is crucial for site approval and progressing with the development of a Del Taco restaurant. The prospective franchisee should ask the franchisor for specific details about the financial requirements for developers.