factual

What exhibit outlines the site selection process for a Del Taco restaurant?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

If, at the time of execution of this Agreement, a location for the Restaurant has not been obtained by Franchisee and approved by Del Taco, Franchisee shall lease, sublease, or acquire a site for the Restaurant, subject to Del Taco's written consent in accordance with the Site Selection Addendum attached as Exhibit B (the "Site Selection Addendum"). Franchisee shall not relocate the Restaurant without Del Taco's prior written consent.

Source: Item 22 — CONTRACTS (FDD pages 58–59)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, the site selection process is detailed in the Site Selection Addendum, which is attached as Exhibit B to the Franchise Agreement. If a location hasn't been secured and approved by Del Taco at the time of the agreement, franchisees must lease, sublease, or acquire a site that receives Del Taco's written consent, as outlined in the Site Selection Addendum. Franchisees are prohibited from relocating the restaurant without prior written consent from Del Taco.

Del Taco will furnish suggested site selection criteria, reflected in advice based on site and demographic factors, including minimum standards for the restaurant location. Del Taco may provide site selection counseling and assistance and perform on-site evaluations as deemed advisable, although on-site evaluations are not required. If Del Taco considers an on-site evaluation necessary, the franchisee is responsible for reimbursing Del Taco for all reasonable expenses, including travel, lodging, and meals.

Within 180 days of the Effective Date, the franchisee must acquire or lease commercial real estate properly zoned for the business, subject to Del Taco's consent. This location must be within the designated Site Selection Area. Del Taco will not establish or franchise another Del Taco Restaurant within this area until a location is approved or the search period expires. Franchisees must submit a site approval package with specified forms and data, including a site plan, financial information, and evidence of favorable prospects for obtaining the site. Del Taco has 30 days to approve or disapprove the proposed site in writing. Failure to secure an approved site within the search period may result in termination of the Franchise Agreement.

Del Taco may require franchisees to pay for a trade area survey analysis if the proposed site is near an existing restaurant. Depending on the survey results, Del Taco may reject the site or require the franchisee to make a business impact payment to affected franchisees. Within 60 days after site approval, the franchisee must execute a lease coterminous with the Franchise Agreement, including the Addendum to Lease attached as Exhibit G. Del Taco's consent to a site does not constitute a warranty of its suitability, but only indicates that the site meets Del Taco's minimum criteria at the time of evaluation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.