Who pays for the inspection and testing of a potential supplier for Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee wishes to purchase any products or any items from an unapproved supplier, Franchisee shall first submit to Del Taco a written request for such approval.
Franchisee shall not purchase any products or services from any supplier until, and unless, such supplier has been approved in writing by Del Taco.
Del Taco shall have the right to require that its representatives be permitted to inspect the supplier's facilities, and that samples from the supplier be delivered, either to Del Taco or to an independent laboratory designated by Del Taco for testing.
A charge not to exceed the reasonable cost of the inspection and the actual cost of the test shall be paid by Franchisee or the supplier.
Del Taco may also require that the supplier comply with such other requirements as Del Taco may deem appropriate, including payment of reasonable continuing inspection fees and administrative costs, or other payment to Del Taco by the supplier on account of their dealings with Franchisee or other franchisees, for use, without restriction (unless otherwise instructed by the supplier) and for services that Del Taco may render to such suppliers.
Del Taco reserves the right, at its option, to reinspect from time to time the facilities and products of any such approved supplier and to revoke its approval upon the supplier's failure to continue to meet any of Del Taco's then current criteria.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, if a franchisee wishes to use a supplier not already approved by Del Taco, the franchisee must first seek written approval from Del Taco. As part of the approval process, Del Taco has the right to inspect the supplier's facilities and test samples, either directly or through an independent laboratory.
The cost for the inspection and testing of a potential supplier for Del Taco is borne either by the franchisee or the supplier. The FDD states that a charge not to exceed the reasonable cost of the inspection and the actual cost of the test shall be paid by Franchisee or the supplier.
Del Taco also reserves the right to re-inspect approved suppliers and revoke approval if they fail to meet current standards. The document does not specify who would bear the costs of reinspection. Del Taco can also require the supplier to comply with other requirements, including paying reasonable continuing inspection fees and administrative costs, or making other payments to Del Taco for services rendered to the suppliers.