What is the Developer's obligation regarding Site Approval Packages and restaurant development according to the Del Taco Development Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
The Developer shall submit Site Approval Packages and shall develop and open the total number of Restaurants set forth on and in accordance with the Development Schedule.
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.
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.
(b) If Developer is remodeling an existing building, Del Taco must approve all remodel plans and specifications before the Developer begins any work.
The Developer shall pay the cost, including engineering and architectural fees, incurred in obtaining approvals by the appropriate governmental authorities of the site plan, construction plans, specifications and layout.
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; and entered into a construction contract for the Restaurant, the Developer shall notify Del Taco and shall commence construction of the Restaurant in accordance with the following terms and conditions:
Services by Del Taco.
Del Taco shall provide to the Developer one copy of the following:
(a) Del Taco's standard site selection criteria as then in effect;
(b) Sample site plans and layouts; and
(c) A standard construction package (which Del Taco may modify from time to time), including (without limitation) plans and specifications, with the understanding that the Developer shall adapt the plans and specifications, at the Developer's expense, for use at any approved site.
(c) During the course of construction of the Restaurant, the Developer shall permit authorized personnel of Del Taco to enter the Restaurant at any time during normal business hours, with or without notice, for the purpose of inspecting and examining the construction of the Restaurant to ascertain whether it complies with the terms of this Agreement.
Upon notice from Del Taco, the Developer, at its sole cost and expense, promptly shall correct any deficiencies detected by an inspection.
(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.
(a) The Developer fails to submit a complete Site Approval Package by the time set forth in the Development Schedule.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, a developer with Del Taco must adhere to a specific process for site approval and restaurant development. The developer is required to submit Site Approval Packages according to the Development Schedule outlined in their agreement. The developer has sole responsibility for acquiring, developing, and constructing the Del Taco restaurant on the approved site. Prior to construction, Del Taco must approve the site without conditions, and the developer must secure the rights to use the site through purchase or lease, obtaining all necessary permits and governmental approvals. The developer must also have Del Taco approve their general contractor and architect.
Before starting construction, the developer must ensure Del Taco has approved the site and construction plans. If remodeling an existing building, Del Taco must approve all remodel plans and specifications before any work begins. The developer is responsible for paying all costs associated with obtaining governmental approvals for the site plan, construction plans, specifications, and layout, including engineering and architectural fees. The developer must notify Del Taco upon acquiring the right to use the site, obtaining necessary permits, and entering into a construction contract, and then commence construction according to specified terms and conditions.
Del Taco will provide the developer with standard site selection criteria, sample site plans and layouts, and a standard construction package, which the developer must adapt at their own expense for the approved site. Del Taco has the right to inspect the construction site at any time during normal business hours to ensure compliance with the agreement, and the developer must promptly correct any deficiencies identified during these inspections at their own cost. Del Taco's approval of a Site Approval Package does not guarantee the future success of the restaurant. The developer must submit a complete Site Approval Package by the time set forth in the Development Schedule to avoid defaulting on the agreement.