Under what agreement is the Initial Franchise Fee paid to Del Taco?

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.

• (b) Upon the execution by the Developer of a Franchise Agreement, Del Taco shall credit from the Development Fee $35,000 for the first Restaurant scheduled for opening and $10,000 for each subsequent Restaurant scheduled for opening towards the initial franchise fee for each of those Restaurants. The Developer shall pay the balance of the initial franchise fee for the second and each subsequent Restaurant scheduled for opening. The Developer acknowledges that, once it has executed a Franchise Agreement for a Restaurant, the Developer will not have the right to a refund of any portion of the foregoing fees.
• (c) Notwithstanding any provision of the Agreement to the contrary, if Developer is not able to timely meet its Development Schedule, and provided that Developer and its affiliates are in full compliance with all agreements with Del Taco, Developer may request a twelve-month extension of one or more of the development deadlines in the Development Schedule, which extension Del Taco may grant or deny at its sole option. To request an extension of a development deadline, Developer must provide Del Taco at least six months' advance written notice. For each twelve-month extension of such deadline(s) that Del Taco approves in writing, Developer must (A) pay Company a fee calculated as follows: $5,000 times the number of development deadlines that Developer wishes to extend for twelve months ("Extension Fee") and (B) sign an amendment to the Development Agreement to reflect these specific dates of the extension, and which will include a general release in the form in general use by Del Taco at the time, in favor of Del Taco and its officers, directors, agents, employees, subsidiaries, and affiliates. The Extension Fee is earned upon receipt and is non-refundable; provided, Del Taco will credit the Extension Fee towards payment of the Franchise Fee for subject location upon execution of the applicable Franchise Agreement. In all other circumstances, Del Taco will retain any and all Extension Fees.
• (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.
  • 1. Services by Del Taco. Del Taco shall provide to the Developer one copy of the following:
    • (a) Del Taco's standard site selection criteria as then in effect;
    • (b) Sample site plans and layouts; and
• (c) A standard construction package (which Del Taco may modify from time to time), including (without limitation) plans and specifications, with the understanding that the Developer shall adapt the plans and specifications, at the Developer's expense, for use at any approved site.
• 1. Site Selection. The Developer shall complete and submit the forms and information that Del Taco requires from time to time in connection with any proposed site for a Del Taco restaurant. 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.

Source: Item 23 — RECEIPTS (FDD pages 59–325)