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Type of Expenditure Standard Prototype Expanded Prototype Conversion Prototype End Cap Prototype Inline Prototype Method of Payment When Due To Whom Paid
Franchise Fee2 $35,000 $35,000 $35,000 $35,000 $35,000 Lump Sum (Note 2) Us
Promotion Fee2 $10,000 $10,000 $10,000 $10,000 $10,000 Lump Sum (Note 2) Us
Professional Fee3 $0 to $55,000 $0 to $55,000 $0 to $55,000 $0 to $55,000 $0 to $55,000 As Agreed As Agreed Professionals
Lease Payment4 $8,000 to $15,000 $8,000 to $15,000 $8,000 to $12,000 $8,000 to $12,000 $8,000 to $12,000 Monthly As Agreed Landlord
Building4 $375,000 to $450,000 $435,000 to $510,000 $225,000 to
$250,000 to $325,000 $200,000 to $275,000 As Agreed As Agreed Contractor or Owner
Site Work and Entitlement $125,000 to $375,000 $125,000 to $375,000 $25,000 to $100,000 $25,000 to $100,000 $25,000 to $100,000 As Agreed As Agreed Contractors and Third Parties
Furnishings, Fixtures and Equipment5 $350,000 to $425,000 $350,000 to $425,000 $350,000 to $425,000 $350,000 to $425,000 $350,000 to $425,000 As Agreed As Agreed Vendors
Computer Systems5 $37,000 to $42,000 $37,000 to $42,000 $37,000 to $42,000 $37,000 to $42,000 $37,000 to $42,000 As Agreed As Agreed Vendors and Us
Technical Support Fee $1,700 to $2,500 $1,700 to $2,500 $1,700 to $2,500 $1,700 to $2,500 $1,700 to $2,500 Lump Sum On Invoice Us
Insurance6 $8,000 to $20,000 $8,000 to $20,000 $8,000 to $20,000 $8,000 to $20,000 $8,000 to $20,000 As Agreed As Agreed Vendors
Initial Training7 $15,000 to $25,000 $15,000 to $25,000 $15,000 to $25,000 $15,000 to $25,000 $15,000 to $25,000 As Agreed As Incurred Third Parties
Crew Training7 $48,000 to $68,000 $48,000 to $68,000 $48,000 to $68,000 $48,000 to $68,000 $48,000 to $68,000 As Agreed As Incurred Third Parties
Working Capital8 $10,000 to $15,000 $10,000 to $15,000 $10,000 to $15,000 $10,000 to $15,000 $10,000 to $15,000 As Agreed As Incurred Vendors
Inventory $7,000 $7,000 $7,000 $7,000 $7,000 As Agreed As Incurred Third Parties
Licenses, Fees and Deposits9 $3,000 to $6,000 $3,000 to $6,000 $3,000 to $6,000 $3,000 to $6,000 $3,000 to $6,000 Lump Sum As Incurred Utilities and Agencies
Additional Funds
- 3 months10
$10,000 to $30,000 $10,000 to $30,000 $10,000 to $30,000 $10,000 to $30,000 $10,000 to $30,000 As Agreed As Incurred Third Parties and Us
TOTAL11 $1,042,700 to $1,580,500 $1,102,700 to $1,640,500 $792,700 to $1,227,500 $817,700 to $1,175,500 $767,700 to $1,127,500      

1. Refunds. We have no obligation to refund any costs paid to us. Whether any third party will refund any costs will depend on the third party involved.
2. Franchise Fee and Promotional Fee. See Item 5 of this Disclosure Document for information on when you must pay the Franchise Fee. You pay the Franchise Fee and Promotional Fee when you sign the Franchise Agreement, which must occur within 10 days after construction begins; however, those fees for your first restaurant become due when you sign a Multiple Development Agreement. Under our Growth Incentive Program, we may waive $25,000 of the $35,000 Franchise Fee for certain restaurants.
3. Professional Fees. We recommend that you consult an attorney of your own choosing to review this Disclosure Document, the Franchise Agreement, and the Multiple Development Agreement, as well as an independent accountant to review the attached financial statements, before signing the Franchise Agreement or the Multiple Development Agreement. For markets or areas not already subjected to a real estate market plan approved by us, we also recommend that you engage the services of a reputable market analysis company to perform a thorough market analysis. Additionally, you will need to solicit the services of an architect once your site package has been approved.
4. Real Estate and Improvements. We expect that you will either purchase or lease the real estate for your restaurant. The rent will vary depending on the size and location of your restaurant. Often, the first month's lease payment becomes due upon execution of the lease. We based the amounts on a build-to-suit or build-out lease from a third party, which includes land, building and construction costs. The lease you sign also may include percentage rent, contributions for taxes, common area maintenance fees, and payments for utilities, security deposits, and other items. We did not include those additional costs in the estimated amounts. Should you choose to purchase and pay separately for the construction of the building, you should adjust the total investment costs to cover the actual land and development costs. Land acquisition costs may range from a low of $400,000 to a high of $2,000,000. The range of the cost of construction of the restaurant building, excluding on-site and off-site work, will vary depending on local conditions and the size and type of building that you select. The costs of building permits may vary greatly as well, depending on location. Additionally, the lease you sign may include percentage rent, which may result in higher monthly payments, in addition to contributions for taxes, common area maintenance fees, security deposits, and other items.
5. Furnishings, Fixtures and Equipment. You must purchase certain items of furnishings, fixtures and equipment. The amount of furnishings, fixtures and equipment will depend to some extent on the size of your building. The total costs of the furnishings, fixtures and equipment will also depend on the vendors' pricing, circumstances at your location, your distance from vendors, transportation costs, and similar variables, including point-of-sale equipment, ancillary small computer hardware items, small wares related to kitchen equipment, and the sign and awning package, all of which you must purchase or lease.
6. Insurance. You must carry insurance. The amount listed above represents our best estimate of the premiums required for liability, casualty and worker's compensation insurance during a restaurant's first year of operation. You must have coverage for comprehensive general liability insurance in the amount of $2,000,000.
7. Training. We do not charge a training fee for your initial training, although you may have to pay for certain textbook and testing fees as further explained in Item 11. You must pay the costs of transportation, lodging and food for yourself and your employees during training. The costs of those expenses will depend on the distance you must travel, the type of accommodations used, and the number of employees attending the training and their wages. The amounts listed above assume five weeks of training for you, your operator and two managers. Also included are three weeks of in-restaurant training for crew members, if you are opening your first restaurant, or two weeks of training if you are opening your second restaurant. The amount of crew training can vary, depending on whether you have a Certified Opening Trainer and a training restaurant available in the territory where you are developing a new restaurant.
8. Working Capital. Because of differences in many factors, like sales, managerial skills, and geographic areas, you should view the above estimate of working capital requirements as an absolute minimum. You may need substantially more working capital.
9. Licenses, Fees and Deposits. The range given provides our best estimate of the costs you will incur for business permits and miscellaneous deposits, including utility deposits, but not a lease deposit (listed separately above).
10. Additional Funds Three Months. The amounts listed above represent an estimate of your operating expenses for the initial three months of business. We have based them on our own experience in operating Del Taco restaurants, mainly in the western United States. They include costs for payroll, taxes, food, paper, supplies, utilities, licenses, permits, bank charges, and repair and maintenance. They do not include advertising or royalty payments made to us. The amounts represent estimates, and we cannot guarantee that you will not have additional expenses starting the business. Your costs will depend on factors like the size of your restaurant; how closely you follow our methods and procedures; your management skill, expenses and business acumen; your financing costs; local economic conditions; the local market for restaurants; the prevailing wage rate; competition; and the sales level reached during the initial period.
11. Totals. You should review the amounts listed above carefully with a business advisor before making any decision to purchase the franchise. We do not offer any financing directly or indirectly for any part of the initial investment.