What does a 'Phase Three' environmental assessment for a Del Taco location involve?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
ervice providers.
-
- 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 Three environmental assessment involves creating a cleanup plan to handle any contamination found on the property. The FDD notes that environmental assessment costs are site-specific, depending on the property's location, previous uses, the uses of nearby properties, and the current condition of the site.
The FDD also mentions the costs of Phase One and Phase Two assessments. A Phase One assessment, which involves title research, typically costs between $2,500 and $4,000. A Phase Two assessment, which may require borings, well sampling, and invasive testing, generally ranges from $10,000 to $34,000.
However, because Phase Three assessments are highly dependent on the specific site, the FDD does not provide a cost estimate. As a result, prospective Del Taco franchisees should be prepared for potentially significant and variable costs associated with addressing any environmental issues discovered during the assessment process. It would be prudent to discuss potential environmental concerns and assessment costs with Del Taco's real estate team during the site selection process.