Under what conditions are the initial investment payments to Del Taco refundable?

According to Del Taco's 2025 Franchise Disclosure Document, initial investment payments made directly to Del Taco are generally not refundable. Specifically, the FDD states that all portions of the initial investment paid to Del Taco are fully earned when paid and are not refundable. This applies to both the initial investment for a single franchise and the initial investment under a Development Agreement for multiple Del Taco restaurants.

However, the refundability of payments made to third parties, such as contractors or consultants, will depend on the specific agreements you have with them. Del Taco recommends consulting with an attorney and accountant before signing any agreements. The document also notes that financing costs can significantly affect the total investment, and franchisees may incur other costs specific to their project.

For franchisees considering developing multiple Del Taco restaurants through a Development Agreement, the FDD explicitly states that no part of the initial investment is refundable. This underscores the importance of thorough due diligence and careful consideration before entering into such an agreement with Del Taco. Prospective franchisees should clarify the refund policies of third-party vendors and consultants during their initial negotiations to understand their potential financial exposure.