In the Del Taco franchise agreement receipt, what information must the franchisee provide when signing?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchise Agreement. Subject to Del Taco's written approval of a proposed site and the construction plans for the Restaurant proposed for development at the site, Del Taco shall send the Developer a Franchise Agreement for the proposed site using the then-current form of Franchise Agreement being offered to new Del Taco franchisees. Prior to the commencement of construction of the Restaurant, and within 10 days (or any longer time required by law) after the receipt of the Franchise Agreement from Del Taco for an approved site, the Developer shall execute the Franchise Agreement and return it to Del Taco, together with all payments then due Del Taco. Promptly upon Del Taco's receipt of the properlyexecuted Franchise Agreement and all payments then due Del Taco, Del Taco shall execute the same and return a copy to the Developer. If Del Taco does not receive the properly-executed Franchise Agreement and all payments than due Del Taco within that 10-day period, Del Taco shall have the right to revoke its approval of the proposed site and, if Del Taco revokes its approval, the Developer shall have not have any right to open a Restaurant on that site.
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- Acquisition, Development and Construction of Restaurant Site. 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.
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- Pre-Construction Obligations of Developer. 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.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco FDD, before construction commences on a Del Taco restaurant, the developer must fulfill several obligations. These include obtaining the right to use the site through purchase or lease, securing all necessary permits and governmental approvals, and providing Del Taco with fully executed copies of the lease or asset purchase agreement, including the recorded deed. Additionally, the developer must provide certified copies of any and all related acquisition documents to Del Taco upon request.
Prior to the commencement of construction of the Restaurant, and within 10 days (or any longer time required by law) after the receipt of the Franchise Agreement from Del Taco for an approved site, the Developer shall execute the Franchise Agreement and return it to Del Taco, together with all payments then due Del Taco. Promptly upon Del Taco's receipt of the properlyexecuted Franchise Agreement and all payments then due Del Taco, Del Taco shall execute the same and return a copy to the Developer. If Del Taco does not receive the properly-executed Franchise Agreement and all payments than due Del Taco within that 10-day period, Del Taco shall have the right to revoke its approval of the proposed site and, if Del Taco revokes its approval, the Developer shall have not have any right to open a Restaurant on that site.
In summary, the franchisee must provide Del Taco with a properly executed Franchise Agreement, all required payments, copies of site control documents (lease or purchase agreement), and certified copies of acquisition documents before construction can begin. Failure to meet these obligations within the specified timeframe may result in Del Taco revoking site approval, preventing the franchisee from opening a restaurant at that location.