Under the Development Agreement, how many Del Taco Restaurants are you obligated to develop?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Under our Development Agreement (see Exhibit D to this Disclosure Document), you will have the right and obligation to develop two or more Del Taco Restaurants within a defined geographic area. The Development Area will be described in the Development Agreement. Development Areas may be designated at Del Taco's discretion in such manner as we deem appropriate but, typically, we define Development Areas by market points as determined by us. You must enter into a separate Franchise Agreement (see Exhibit E to this Disclosure Document) on our then-current form of franchise agreement, the terms of which may differ from the current version of the Franchise Agreement attached to this Disclosure Document, for each Del Taco Restaurant you open.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, if you enter into a Development Agreement with Del Taco, you are obligated to develop a minimum of two Del Taco Restaurants within a specific geographic area. This area will be defined in the Development Agreement itself.
The Development Agreement grants you the right, but also imposes the obligation, to develop these restaurants. The specific geographic area, or Development Area, is determined by Del Taco at their discretion, typically based on market points they identify.
For each Del Taco Restaurant you plan to open within the Development Area, you must also sign a separate Franchise Agreement. This agreement will be based on Del Taco's current form at that time, and the terms may differ from the sample Franchise Agreement included in the FDD. This means that while the Development Agreement sets the stage for your expansion, each individual restaurant requires its own franchise agreement with potentially updated terms.