Under what conditions does the Del Taco Development Agreement and all Development Rights expire?

According to Del Taco's 2025 Franchise Disclosure Document, the Development Agreement and all Development Rights granted to a developer expire under specific conditions related to the development schedule. The agreement terminates immediately upon the required opening date for the last restaurant outlined in the Development Schedule or the actual opening date of the last restaurant, whichever comes first. However, this expiration is subject to earlier termination as per the agreement's terms and conditions.

This clause emphasizes the importance of adhering to the Development Schedule. A prospective Del Taco developer must be diligent in meeting the agreed-upon timelines for opening new restaurants. Failure to open restaurants according to the schedule can lead to the termination of the agreement and the loss of development rights.

This condition is standard in development agreements, as franchisors like Del Taco need to ensure that developers are actively expanding the brand within the designated area. The "time is of the essence" clause further underscores the critical nature of meeting deadlines. Developers should carefully review the Development Schedule and ensure they have the resources and capabilities to meet the required opening dates to avoid jeopardizing their development rights.