What is the approximate radius of the Site Selection Area for a Del Taco restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement grants you the right to operate a Del Taco restaurant at a single location selected by you and approved by us. If an approved location has not been identified when you execute the Franchise Agreement, a Site Selection Addendum to the Franchise Agreement will identify market points as determined by us (the "Site Selection Area") which will be within an approximate one-mile radius in which you may search for a site. When establishing market points, we consider various information, such as the locations of other restaurants, direct and indirect competition, store characteristics, historical consumer source surveys, sales history, mobile customer data, demographics, and psychographics, among others. Once approved by us, we will list the Restaurant's approved location on Exhibit A of the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, if a location is not already approved when the Franchise Agreement is executed, a Site Selection Addendum will define the Site Selection Area. This area, within which a franchisee may search for a site, is described as being within an approximate one-mile radius. Del Taco considers factors such as the location of other restaurants, competition, store characteristics, consumer surveys, sales history, customer data, demographics, and psychographics when establishing these market points. Once a location is approved by Del Taco, it will be listed on Exhibit A of the Franchise Agreement.
This means that a prospective Del Taco franchisee will initially be given a general area to search for a suitable location, rather than a specific address. The one-mile radius provides a defined, but not exclusive, area for the franchisee to focus their search. Del Taco's consideration of various market factors suggests they take a data-driven approach to site selection, which could benefit the franchisee by increasing the likelihood of a successful location.
However, it is important to note that the franchisee does not have complete autonomy in site selection. Del Taco must approve the final location. This approval process ensures that the location meets Del Taco's standards and aligns with their overall market strategy. Franchisees should be prepared to work closely with Del Taco during the site selection process and be open to considering their feedback and recommendations.