What conditions must the Del Taco Developer meet before notifying Del Taco and commencing construction of a Restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
shall have the right to revoke its approval of the proposed site and, if Del Taco revokes its approval, the Developer shall have not have any right to open a Restaurant on that site.
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- Acquisition, Development and Construction of Restaurant Site. The Developer shall have sole responsibility for the acquisition (through purchase, lease, sublease or otherwise), development and construction of a Restaurant on the approved site.
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- Pre-Construction Obligations of Developer. The Developer shall not begin construction of any Restaurant unless the following events have taken place:
- (a) Del Taco has approved the site, without conditions, in accordance with Section 7 of this Agreement.
- (b) The Developer has obtained the right to use the site, either by purchase or lease, and has obtained and provided a fully executed copy of the lease or asset purchase agreement, including the recorded deed, to Del Taco and has obtained all necessary permits, governmental approvals, and other necessary rights to construct, maintain and operate a Restaurant on the approved site. Developer shall provide a certified copy of any and all related acquisition documents to Del Taco as requested.
- (c) Del Taco has approved the Developer's general contractor and architect pursuant to Del Taco's requirements.
- (d) Del Taco has approved the Developer's Site Approval Package and final site plan, layout and construction plans, with the understanding that Del Taco's approval of a Site Approval Package and any site plan, layout or plans does not constitute any representation, warranty or guarantee by Del Taco regarding the future success of the site for a Restaurant.
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- Construction Requirements. As soon as the Developer has acquired the right to use the site, obtained all necessary permits and governmental approvals; otherwise obtained the rights to construct, maintain and operate the Restaurant;
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a Developer must meet several conditions before notifying Del Taco and starting construction of a restaurant. First, Del Taco must provide written approval of the proposed site and construction plans. The Developer needs to secure the right to use the site through purchase or lease, providing Del Taco with a fully executed copy of the lease or asset purchase agreement, including the recorded deed.
Additionally, the Developer is responsible for obtaining all necessary permits and governmental approvals required to construct, maintain, and operate the Del Taco restaurant on the approved site, providing certified copies of all related acquisition documents to Del Taco upon request. Del Taco must also approve the Developer's choice of general contractor and architect, ensuring they meet Del Taco's standards.
Once these pre-construction obligations are fulfilled, the Developer can notify Del Taco and begin construction, adhering to the site plan approved by Del Taco and using Del Taco's standard construction plans, specifications, and layouts. Any alterations to these plans due to local laws or regulations must be approved by Del Taco. The Developer bears all costs associated with obtaining governmental approvals for the site plan and construction plans.