What constitutes a material default under the Del Taco franchise agreement regarding changes to approved final plans?

According to the 2025 Del Taco Franchise Disclosure Document, making changes or modifications to the final construction plans after they have been approved by Del Taco, without obtaining Del Taco's prior written permission, constitutes a material default under the Franchise Agreement. Del Taco retains the right to withhold authorization to open the restaurant for business until the unauthorized changes are rectified or reversed to their reasonable satisfaction.

This provision underscores the importance of adhering to Del Taco's design standards and maintaining consistency across all franchise locations. The initial plan review ensures compliance with these standards, and any deviation without approval can compromise the brand's image and operational efficiency.

For a prospective Del Taco franchisee, this means that once the final construction plans are approved, any desired changes, no matter how minor they may seem, must be submitted to Del Taco for written approval. Failure to do so can result in delays in opening the restaurant and potential legal ramifications due to the material default. Franchisees should factor in potential delays for change requests during the construction phase and maintain open communication with Del Taco to avoid any misunderstandings or unauthorized modifications.

This requirement is fairly standard in franchising, as franchisors need to protect their brand standards and ensure uniformity across all locations. Franchisees should carefully review the approved plans and specifications before commencing construction to minimize the need for changes and ensure a smooth opening process.