What is the Del Taco franchisee's responsibility for ensuring the restaurant meets high operating standards?
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.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, franchisees play a crucial role in maintaining the brand's high operating standards. Del Taco emphasizes that every detail of the restaurant is vital for both the franchisee's success and the overall reputation of the Del Taco system. Franchisees are responsible for constructing, furnishing, and opening their restaurants according to Del Taco's requirements.
To uphold these standards, Del Taco requires franchisees to operate their restaurants in strict compliance with the methods, standards, and specifications outlined in the Standard Operating Procedures Manuals, which Del Taco may revise periodically. This includes purchasing all products, ingredients, supplies, and materials exclusively from suppliers approved by Del Taco. These suppliers must consistently meet Del Taco's standards and specifications, have adequate quality controls, and enable the system to benefit from marketplace efficiencies.
Furthermore, franchisees must adhere to all applicable laws and regulations and ensure that the products sold meet Del Taco's standards. In cases where products are adulterated, fail to comply with laws, or the restaurant's premises and operations do not meet the required standards, the franchisee is obligated to immediately close the restaurant, notify Del Taco, and take corrective actions. The restaurant cannot reopen until Del Taco inspects the premises and confirms that all issues have been resolved and that the restaurant meets Del Taco's standards. Del Taco also retains the right to require equipment upgrades and changes to kitchen and electronic equipment to maintain operational standards.