What is the Del Taco franchisee's responsibility regarding the Restaurant's compliance with federal, state, and local laws, codes, and regulations?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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. The lease must contain the provisions contained in Exhibit G (Addendum to Lease) hereof. Within fifteen (15) days following Franchisee's execution of the lease for the Restaurant premises, Franchisee shall provide to Del Taco copies of (i) the fully-executed lease for the premises and the executed Addendum to Lease and (ii) the landlord's and property management company's notice address and contact information. Further, no later than ten (10) days following Franchisee's opening of the Restaurant 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.
- 5.3.4 Franchisee shall not open the Restaurant until the Operating Principal, the Restaurant Manager and the Shift Managers have successfully completed all training required by Del Taco,
and Franchisee has hired and trained to Del Taco's standards a sufficient number of employees to service the anticipated level of the Restaurant's customers.
- 5.3.5 Franchisee shall not open the Restaurant until all amounts due to Del Taco under this Agreement or any other related agreements have been paid.
- 5.3.6 As and when required by Del Taco, Franchisee shall provide to Del Taco a summary of the expenditures incurred by Franchisee, on the format required by Del Taco, in connection with the acquisition, development and opening of the Restaurant and in connection with any remodeling or renovation of the Restaurant.
- 5.4 Training.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees are responsible for complying with all federal, state, and local laws, codes, and regulations at their own expense. This includes laws related to construction, design, and operation of the restaurant, including ADA (Americans with Disabilities Act) provisions. Franchisees must also secure all necessary zoning classifications and clearances required by local laws or ordinances.
Prior to construction, franchisees must have a qualified, licensed architect or engineer create preliminary plans for Del Taco's approval, ensuring they conform to Del Taco's standard image specifications. However, compliance with all laws, codes, and regulations remains the franchisee's sole responsibility. Franchisees are also required to obtain all permits and certifications needed for lawful construction and operation, providing copies to Del Taco upon request. They must employ a qualified, licensed general contractor acceptable to Del Taco and maintain the required insurance during construction.
Del Taco franchisees must also comply with all federal, state, and local laws, rules, and regulations, including employment, labor, wage and hour, and tax laws. They are responsible for obtaining all necessary permits, certificates, and licenses, such as business licenses, health certificates, and sales tax permits. If any legal requirements conflict with the franchise agreement or Del Taco's manuals, the franchisee must comply with the law and notify Del Taco in writing. Franchisees must also inform Del Taco within three days of any health or safety violations, legal actions, or accidents that could affect the restaurant's operation or financial condition.
Franchisees must operate the restaurant in full compliance with all applicable laws, ordinances, and regulations, including those related to food handling, occupational hazards, health, workers' compensation, unemployment insurance, and tax payments. They are also required to adhere to ethical advertising standards and maintain high standards of honesty and integrity in all dealings with customers, suppliers, and the public. If products sold at the restaurant do not comply with applicable laws or regulations, the franchisee must immediately close the restaurant and notify Del Taco, taking steps to correct the issue before reopening.