What is the Del Taco franchisee's obligation concerning the development of the restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
aco's prior written approval.
- 4.10 Delegation of Duties. Franchisee acknowledges and agrees that any designee, employee, or agent of Del Taco may perform any duty or obligation imposed on or available to Del Taco by the Agreement, as Del Taco may direct.
5. Obligations of Franchisee; Operational Standards.
- 5.1 System Standards and Development of Restaurant. Franchisee understands and acknowledges that every detail of the Restaurant is important to Franchisee, Del Taco, and other franchisees in order to develop and maintain high operating standards, to increase the demand for the products sold by all franchisees, and to protect Del Taco's reputation and goodwill. Franchisee shall construct, furnish, and open the Restaurant according to the requirements contained herein. Franchisee shall open the Restaurant at the later of (a) one hundred eighty (180) days from the Effective Date, or (b) if upon execution of this Agreement, a location for the 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.
- 5.2.6 Prior to signing a lease, Franchisee shall submit to Del Taco a final draft of the lease for the Restaurant premises.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, franchisees have several obligations regarding the development of their restaurant. Del Taco emphasizes that every detail of the restaurant is crucial for maintaining high operating standards and protecting the brand's reputation. Franchisees are responsible for constructing, furnishing, and opening the restaurant according to Del Taco's requirements. The restaurant must open within 180 days from the effective date of the franchise agreement or, if a location hasn't been secured, within 180 days of Del Taco's location approval or the franchisee's access to the leased premises.
Before construction, franchisees must employ a qualified architect or engineer acceptable to Del Taco to prepare preliminary plans based on Del Taco's site construction package. Del Taco's approval is limited to conformance with its standard image and layout, while compliance with all federal, state, and local laws, including ADA provisions, remains the franchisee's sole responsibility. If Del Taco provides site development services, the franchisee must pay a non-refundable site development fee of up to $50,000, in addition to out-of-pocket and internal overhead costs, before these services are rendered. Del Taco will provide its standard construction package, including plans, specifications, site criteria, and sample site plans, which the franchisee must adapt at their own expense for the selected site.
Franchisees must also adapt Del Taco's standard specifications to the restaurant location, subject to Del Taco's approval, ensuring the plans conform to Del Taco's general criteria. Del Taco retains the right to modify architectural plans and specifications as needed. Franchisees are required to provide a summary of expenditures related to the acquisition, development, opening, remodeling, or renovation of the restaurant in a format required by Del Taco. Franchisees cannot open the restaurant until all amounts due to Del Taco under the franchise agreement or related agreements have been paid. These obligations ensure that each Del Taco restaurant meets the brand's standards and complies with all applicable regulations.