What insurance requirements must a Del Taco franchisee meet during the entire period of construction?

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee must obtain and maintain specific insurance coverage during the entire construction period. Del Taco requires franchisees to obtain and keep in force the insurance required under Section 11 of the franchise agreement. The franchisee must also provide Del Taco with proof of this insurance as requested.

Specifically, franchisees must carry Builder's All Risk insurance for the full replacement cost of all real and personal property involved in the construction, renovation, refurbishment, or remodeling of the Del Taco restaurant. This insurance protects against potential losses or damages to the property during the construction phase.

In addition to Builder's All Risk insurance, Del Taco franchisees are also required to maintain other insurance policies, including Commercial General Liability insurance, Business Automobile Liability insurance, and Workers' Compensation insurance. These policies provide coverage for various risks, such as property damage, bodily injury, and employee-related claims. The specific coverage amounts and terms may be updated or modified by Del Taco in the manuals, lease agreements, or in writing at its sole discretion. Franchisees must ensure they meet all the insurance requirements to avoid any potential breaches of the franchise agreement and to protect their investment.