What is a Del Taco franchisee prohibited from doing before complying with all of Del Taco's pre-opening requirements?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
rant for business, Franchisee shall provide Del Taco with a copy of the commencement date letter from the landlord, or similar documentary evidence which indicates the commencement date under the lease and the expiration date of the lease.
- 5.3 Restaurant Opening. In connection with the opening of the Restaurant:
- 5.3.1 Franchisee shall not open the Restaurant for business without first complying with all of Del Taco's pre-opening requirements and obligations contained in this Agreement and the Manuals.
- 5.3.2 Franchisee shall draw upon the Promotional Fee as described in Section 3.2 to conduct such grand opening and promotional activities as Del Taco may require.
- 5.3.3 Franchisee shall not open the Restaurant until Del Taco has determined that all construction has been substantially completed, and that such construction conforms to Del Taco's standards including materials, quality of work, signage, decor, paint, and equipment.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee is prohibited from opening their restaurant for business until they have met all of Del Taco's pre-opening requirements and obligations. These requirements are detailed within the franchise agreement and the manuals provided by Del Taco. This stipulation ensures that all Del Taco restaurants adhere to consistent standards and procedures right from the outset.
Specifically, Del Taco also requires that construction is substantially completed and conforms to their standards regarding materials, quality of work, signage, decor, paint, and equipment. Additionally, the Operating Principal, Restaurant Manager, and Shift Managers must successfully complete all required training. The franchisee must also hire and train a sufficient number of employees to meet Del Taco's standards for servicing the anticipated customer volume.
Furthermore, a Del Taco franchisee cannot open for business until all amounts due to Del Taco under the Franchise Agreement or any other related agreements have been paid. This condition ensures that all financial obligations to Del Taco are settled before the restaurant begins operations. These pre-opening requirements are designed to protect Del Taco's brand reputation and ensure a consistent customer experience across all franchise locations.