Under what conditions can a Del Taco franchisee request an extension of the development period for a particular restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
opment Schedule
If you have signed a Development Agreement and you will not be able to timely meet your development schedule, provided that you are in full compliance with all agreements with us, you may request to extend the development period for a particular Restaurant for one period of twelve (12) months, by: (i) providing us with six (6) months' advance written notice of such request, and (ii) paying a non-refundable $5,000 extension fee ("Extension Fee") at least ten (10) days prior to the expiration of the original development schedule associated with the Restaurant. We will approve or disapprove the request for extension at our sole option. Such Extension Fee(s) will be applied toward payment of the Franchise Fee for subject location upon execution of the applicable Franchise Agreement and, if the development period under a Development Agreement is not extended or otherwise lapses, we will retain any and all Extension Fees. You will be required to sign an amendment to the Development Agreement to reflect these terms and that amendment will include a general relea
Source: Item 5 — INITIAL FEES (FDD pages 16–18)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee who has signed a Development Agreement may request an extension of the development period for a restaurant under specific conditions. The franchisee must be in full compliance with all agreements with Del Taco to be eligible for an extension.
The franchisee must provide Del Taco with six months' advance written notice of the extension request. Additionally, the franchisee must pay a non-refundable $5,000 extension fee at least ten days before the original development schedule expires. This extension is for one period of twelve months. Del Taco retains the sole option to approve or disapprove the request for an extension.
If the extension is granted and a Franchise Agreement is executed for the location, the $5,000 extension fee will be applied toward the Franchise Fee. However, if the development period is not extended or lapses, Del Taco will retain the extension fee. The franchisee will also be required to sign an amendment to the Development Agreement, which includes a general release in favor of Del Taco, to reflect these terms.