Can a Del Taco franchisee relocate the Restaurant without Del Taco's prior written consent?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to operate the Restaurant only at the location we approve. You may not operate the Restaurant or offer or sell any products or services at or from any location other than the approved location identified in Exhibit A of the Franchise Agreement. We do not restrict you from soliciting or accepting food or beverage orders from consumers outside your Protected Area, including the internet, catalog sales, telemarketing, or direct marketing. However, we have the right to approve all advertising and marketing media and materials you wish to use. No restrictions exist that prevent us from soliciting or accepting orders from consumers inside your Protected Area in the same manner, and we will owe you no compensation if we do so. You may not relocate the Restaurant without our prior written consent. You must comply with our then-current site selection and construction standards.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from relocating their restaurant without obtaining prior written consent from Del Taco. This requirement ensures that any potential new location meets Del Taco's standards for site selection and construction.
This stipulation is common in franchising, as the location of a franchise unit significantly impacts its success and the overall brand image. Del Taco maintains control over site selection to ensure brand consistency and to optimize market penetration. The franchisee must adhere to Del Taco's current site selection and construction standards if relocation is approved.
This policy protects Del Taco's strategic interests by preventing franchisees from moving to locations that could harm the brand or cannibalize sales from other nearby Del Taco restaurants. For a prospective franchisee, this means that the initial location decision is critical, and any future relocation plans must be carefully considered and approved by Del Taco.