What does a 'Phase One' environmental assessment for a Del Taco location involve?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Environmental assessment costs tend to be site-specific in nature and can vary based on where the property is located, a property's former use(s), the use(s) of neighboring properties, and a property's existing conditions. A "Phase One" assessment involves title research and can cost approximately $2,500 to $4,000. The cost of a "Phase Two" assessment typically varies because some amount of borings, well sampling, and invasive testing may need to be completed on the property and will typically range from $10,000 to $34,000. "Phase Three" assessments involve the development of a clean-up mitigation plan to address on-site contamination. By their site-specific nature, the costs for a Phase Three will vary significantly, and these co
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–28)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a Phase One environmental assessment includes title research and costs approximately $2,500 to $4,000. These assessments are site-specific, varying based on the property's location, previous uses, the uses of neighboring properties, and existing conditions.
Phase Two assessments typically involve borings, well sampling, and invasive testing, with costs ranging from $10,000 to $34,000. Phase Three assessments focus on developing a clean-up mitigation plan for on-site contamination, but the costs for Phase Three assessments are excluded due to their highly variable nature.
For prospective Del Taco franchisees, understanding these environmental assessment phases is crucial when evaluating potential locations. The initial Phase One assessment provides a preliminary understanding of potential environmental concerns through title research. Depending on the findings of Phase One, a more detailed Phase Two assessment may be required, involving physical testing of the site. The possibility of needing a Phase Three assessment, while not costed in the FDD, should be considered as it could significantly increase the overall investment if contamination is found.