What is the estimated cost range for a 'Phase Two' 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, a Phase Two environmental assessment typically ranges from $10,000 to $34,000. This assessment may involve borings, well sampling, and invasive testing on the property to determine the extent of any environmental contamination.
The need for and cost of a Phase Two assessment is highly dependent on the specific site. Factors influencing the cost include the property's location, its previous uses, the uses of neighboring properties, and the existing conditions of the site. These factors can necessitate more extensive testing, which drives up the overall cost.
Prospective Del Taco franchisees should be aware that environmental assessments are a necessary step in the site selection process. The costs can vary significantly, and Phase Three assessments, which involve developing a clean-up mitigation plan, are excluded from this estimate due to their site-specific nature and potentially high costs. It is crucial to conduct thorough due diligence and consult with environmental professionals to understand the potential environmental liabilities and costs associated with a specific location.