What is the duration of the initial Search Period that a Del Taco franchisee has to locate a site?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Del Taco LLC ("Del Taco"), a California limited liability company, and the undersigned (the |
|---|
| "Franchisee") have this day of, 20 (the "Effective Date") entered into a Del Taco |
| Franchise Agreement ("Franchise Agreement") and desire to supplement its terms as set out below in this |
| Site Selection Addendum (this "Site Selection Addendum"). |
| 1. |
| Time to Locate Site: Within one hundred eighty days (180) days after the Effective Date |
| (the "Search Period"), Franchisee shall acquire or lease/sublease, at Franchisee's expense, commercial |
| real estate that is properly zoned for the use of the business to be conducted by Franchisee under the |
| Franchise Agreement (a "Restaurant") at a site consented to Del Taco as hereinafter provided. Such |
| location shall be within the following area: |
| (the "Site Selection Area"). The Site Selection Area is described solely for the |
| purpose of selecting a site for the Restaurant. |
| Del Taco shall not establish, nor franchise another to |
| establish, a Del Taco Restaurant operating under the System within the Site Selection Area until Del Taco |
| consents to a location for the Restaurant, or until the expiration of the Search Period, whichever event first |
| occurs. If a suitable site has not been identified and consented to by the end of the Search Period, Del Taco |
| may, at its option, extend the Search Period by up to sixty (60) days. Franchisee acknowledges and agrees |
| that Del Taco shall have no responsibility for, or liability to Franchisee for, any site review, analysis, |
| evaluation, or recommended undertaken by or on behalf of any real estate broker or advisor used or retained |
| by Franchisee. Failure by Franchisee to acquire or lease an approved site for the Franchised Business within |
| the Search Period shall constitute a default under Section 13 of the Franchise Agreement and under this |
| Addendum, and Del Taco may terminate the Franchise Agreement and this Addendum, pursuant to the |
| terms of Section 13 of the Franchise Agreement. |
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a new franchisee is given an initial 180-day 'Search Period' from the effective date of the Franchise Agreement to find and secure a location for their restaurant. This location must be properly zoned for a Del Taco restaurant and be within a designated 'Site Selection Area'. The franchisee is responsible for all expenses related to acquiring or leasing the commercial real estate.
Del Taco retains the right to approve the site. The franchisor will not establish another Del Taco restaurant within the Site Selection Area until they approve a location or the Search Period expires. Del Taco may extend the Search Period by up to 60 days at its discretion if a suitable site is not found within the initial timeframe.
Failure to secure an approved site within the Search Period, including any extensions, constitutes a default under the Franchise Agreement. This default allows Del Taco to terminate the Franchise Agreement. This underscores the importance of diligent site selection and the potential financial risk to the franchisee if a location cannot be secured in a timely manner.