What is the total estimated initial investment for a Del Taco Development Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Type of Expenditure | Amount | Method of payment | When Due | To Whom Paid | |
|---|---|---|---|---|---|
| Professional Fee15 | $1,000 | $5,000 | As incurred | As incurred | Third Parties |
| Total Estimated Initial Investment for Two (2) Del Taco Restaurants (Based Upon High / Low Ranges from Table Above Minus Franchise Fee) | $2,924,400 | $6,572,000 | See Table Above for Each Expenditure | See Table Above for Each Expenditure | See Table Above for Each Expenditure |
| Remaining Franchise Fee | $25,000 | $25,000 | Lump sum | At signing of Franchise Agreement | Us |
| Total Estimated Initial | $2,995,400 | $6,647,000 | |||
| Investment for a | |||||
| Development | |||||
| Agreement16 |
YOUR ESTIMATED INITIAL INVESTMENT Conversion Restaurant17
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Paid | |
|---|---|---|---|---|---|
| Franchise Fee2 | $35,000 | $35,000 | Lump Sum | (Note 2) | Us |
| Promotional Fee2 | $10,000 | $10,000 | Lump Sum | (Note 2) | Us |
| Land3 | Not Included | Not Included | Not Included | Not Included | Not Included |
| Fee for Architectural and Engineering and Related Consultant Services4 | $27,000 | $124,000 | As Agreed | As Agreed | Consultants |
| Environmental | $2,500 | $34,000 | As | As Agreed | Consultants |
| Assessment5 | Agreed |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–28)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the total estimated initial investment for a Development Agreement ranges from $2,995,400 to $6,647,000. This investment covers the development of a minimum of two Del Taco restaurants. It's important to note that this range excludes the franchise fee, as indicated in the table.
The initial investment includes a professional fee, which ranges from $1,000 to $5,000, and a remaining franchise fee of $25,000. The development fee itself is a fixed $45,000, payable upon signing the Development Agreement. These fees are paid to Del Taco or third parties as incurred or upon signing the agreement, as specified in the table.
The FDD also notes that the estimated initial investment under the Development Agreement can vary depending on the number of Del Taco restaurants the franchisee commits to develop. The provided figures reflect the minimum commitment of two restaurants for new franchisees. None of the initial investment is refundable, so prospective franchisees should carefully consider their financial capabilities and consult with business advisors before making a decision.