Does Del Taco guarantee a franchisee's success at their chosen restaurant location?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby acknowledges and agrees that consent by Del Taco of a site does not constitute an assurance, representation, or warranty of any kind, express or implied, as to the suitability of the site for the Restaurant or for any other purpose.
Consent by Del Taco of the site indicates only that Del Taco believes the site complies with acceptable minimum criteria established by Del Taco solely for its purposes as of the time of the evaluation.
Both Franchisee and Del Taco acknowledge that application of criteria that have been effective with respect to other sites and premises may not be predictive of potential for all sites and that, subsequent to approval by Del Taco of a site and demographic factors, such as competition from other similar businesses, included in or excluded from criteria used by Del Taco could change, thereby altering the potential of a site.
Such factors are unpredictable and are beyond the control of Del Taco.
Del Taco shall not be responsible for the failure of a site approved by Del Taco to meet Franchisee's expectations as to revenue or operational criteria.
Franchisee further acknowledges and agrees that its acceptance of a franchise for the operation of the Restaurant at the site is based on its own independent investigation of the suitability of the site.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco does not guarantee a franchisee's success at their chosen location. While Del Taco provides site selection criteria and may offer site selection counseling and assistance, the FDD explicitly states that their consent of a site does not constitute any assurance, representation, or warranty regarding the site's suitability for a Del Taco Restaurant or any other purpose.
Del Taco's approval only indicates that they believe the site meets their minimum criteria at the time of evaluation. The document acknowledges that criteria effective for other locations may not predict the potential of all sites. Factors such as competition and demographic changes can alter a site's potential and are beyond Del Taco's control.
The FDD makes it clear that Del Taco is not responsible if an approved site fails to meet a franchisee's expectations regarding revenue or operational criteria. The franchisee is expected to conduct their own independent investigation to determine the suitability of the site for a Del Taco restaurant. This means the franchisee bears the ultimate responsibility and risk in selecting a viable location.