What is the estimated cost range for a 'Phase One' environmental assessment for a Del Taco location?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Environmental assessment costs tend to be site-specific in nature and can vary based on where the property is located, a property's former use(s), the use(s) of neighboring properties, and a property's existing conditions. A "Phase One" assessment involves title research and can cost approximately $2,500 to $4,000. The cost of a "Phase Two" assessment typically varies because some amount of borings, well sampling, and invasive testing may need to be completed on the property and will typically range from $10,000 to $34,000. "Phase Three" assessments involve the development of a clean-up mitigation plan to address on-site contamination. By their site-specific nature, the costs for a Phase Three will vary significantly, and these co
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–28)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the estimated cost for a 'Phase One' environmental assessment ranges from approximately $2,500 to $4,000. This assessment typically involves title research and is a standard part of the due diligence process when evaluating potential sites for a new Del Taco restaurant. The cost is paid to consultants as agreed upon. These costs can vary based on the property's location, former uses, the uses of neighboring properties, and existing conditions.
Del Taco franchisees should be aware that this 'Phase One' assessment is only the initial step in evaluating potential environmental concerns. If the 'Phase One' assessment reveals potential issues, a more extensive 'Phase Two' assessment may be required, which involves borings, well sampling, and invasive testing, costing between $10,000 to $34,000. 'Phase Three' assessments, which involve developing a clean-up mitigation plan, are even more site-specific and their costs are not included in the estimated initial investment.
Prospective Del Taco franchisees should carefully consider these potential environmental assessment costs when budgeting for their initial investment, as these costs are site-specific and can vary. Understanding the environmental history and condition of a potential site is crucial to avoid unexpected expenses and delays in the development process. Consulting with experienced environmental consultants is highly recommended to navigate these assessments effectively.