What must a Del Taco franchisee do before commencing any construction of the restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Restaurant has not been obtained by Franchisee and approved by Del Taco, one hundred eighty (180) days from the later of (i) Del Taco's approval of the location for the Restaurant pursuant to the Site Selection Addendum, or (ii) Franchisee's access to the leased premises as permitted by the lessor under the lease.
- 5.2 Pre-Opening Obligations. Before commencing any construction of the Restaurant, Franchisee, at its expense, shall comply, to Del Taco's satisfaction, with all of the following requirements:
- 5.2.1 Franchisee shall employ a qualified, licensed architect or engineer who is acceptable to Del Taco to prepare, for Del Taco's approval, preliminary plans and specifications for site improvement and construction of the Restaurant based upon the site construction package furnished by Del Taco or its designee pursuant to Section 4.1, and as may otherwise be authorized by Del Taco due to the particularities of the site of the proposed location. Del Taco's approval shall be limited to conformance with Del Taco's standard image specifications and layout and shall not relate to Franchisee's obligations with respect to any federal, state and local laws, codes and regulations including the applicable provisions of the ADA regarding the construction, design and operation of the Restaurant, which subjects shall be Franchisee's sole responsibility. If Del Taco or its affiliates provide site development services to Franchisee, Franchisee will be required to pay Del Taco a site development fee of up to fifty thousand dollars ($50,000) for work Del Taco or its affiliates complete toward developing the site, in addition to Del Taco or its affiliates' out-of-pocket and internal overhead costs. This amount is not refundable and must be paid before the site development services are performed.
- 5.2.2 Franchisee shall comply, at Franchisee's expense, with all federal, state and local laws, codes and regulations, including the applicable provisions of the ADA regarding the construction, design and operation of the Restaurant.
- 5.2.3 Franchisee shall be responsible for obtaining all zoning classifications and clearances which may be required by state or local laws, ordinances, or regulations or which may be necessary or advisable owing to any restrictive covenants relating to Franchisee's location. After having obtained such approvals and clearances, Franchisee shall submit to Del Taco, for Del Taco's approval, final plans for construction based upon the preliminary plans and specifications. Del Taco's review and approval of plans shall be limited to review of such plans to assess compliance with Del Taco's design standards for Restaurants. Once approved by Del Taco, such final plans shall not thereafter be changed or modified without the prior written permission of Del Taco. Any such change made without Del Taco's prior written permission shall constitute a material default under this Agreement and Del Taco may withhold its authorization to open the Restaurant for business until the unauthorized change is rectified (or reversed) to Del Taco's reasonable satisfaction.
- 5.2.4 Franchisee shall obtain all permits and certifications required for the lawful construction and operation of the Restaurant and shall certify in writing to Del Taco that all such permits and certifications have been obtained. Franchisee shall provide copies of all such permits and certificates to Del Taco within ten (10) days of Del Taco's request for same.
- 5.2.5 Franchisee shall employ a qualified licensed general contractor who is acceptable to Del Taco to construct the Restaurant and to complete all improvements. Franchisee shall obtain and maintain in force during the entire period of construction the insurance required under Section 11 below; and Franchisee shall deliver to Del Taco such proof of such insurance as Del Taco shall require.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, before starting any restaurant construction, a franchisee must meet several requirements to Del Taco's satisfaction. First, the franchisee must hire a qualified, licensed architect or engineer acceptable to Del Taco to create preliminary plans and specifications for site improvement and construction. These plans should be based on the site construction package provided by Del Taco. Del Taco's approval of these plans is limited to ensuring they conform to Del Taco's standard image specifications and layout.
Additionally, the franchisee is responsible for complying with all federal, state, and local laws, codes, and regulations, including ADA provisions, regarding the restaurant's construction, design, and operation. The franchisee must also obtain all necessary zoning classifications and clearances required by local laws or regulations. After securing these approvals, the franchisee must submit final construction plans to Del Taco for approval, which will be assessed for compliance with Del Taco's design standards. Once approved, these final plans cannot be altered without Del Taco's prior written permission.
Furthermore, the franchisee must obtain all permits and certifications required for the lawful construction and operation of the restaurant and provide written certification to Del Taco that these have been obtained. Copies of these permits and certificates must be provided to Del Taco within ten days of their request. The franchisee is also required to employ a qualified licensed general contractor acceptable to Del Taco for the construction and to maintain the necessary insurance during the construction period, providing proof of insurance to Del Taco as required. If Del Taco or its affiliates provide site development services, the franchisee may be required to pay a site development fee of up to $50,000, which is non-refundable and must be paid before the services are performed.