What are the pre-construction obligations of the Developer before starting construction of any Del Taco Restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
shall have the right to revoke its approval of the proposed site and, if Del Taco revokes its approval, the Developer shall have not have any right to open a Restaurant on that site.
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- Acquisition, Development and Construction of Restaurant Site. The Developer shall have sole responsibility for the acquisition (through purchase, lease, sublease or otherwise), development and construction of a Restaurant on the approved site.
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- Pre-Construction Obligations of Developer. The Developer shall not begin construction of any Restaurant unless the following events have taken place:
- (a) Del Taco has approved the site, without conditions, in accordance with Section 7 of this Agreement.
- (b) The Developer has obtained the right to use the site, either by purchase or lease, and has obtained and provided a fully executed copy of the lease or asset purchase agreement, including the recorded deed, to Del Taco and has obtained all necessary permits, governmental approvals, and other necessary rights to construct, maintain and operate a Restaurant on the approved site. Developer shall provide a certified copy of any and all related acquisition documents to Del Taco as requested.
- (c) Del Taco has approved the Developer's general contractor and architect pursuant to Del Taco's requirements.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a Developer has several obligations to fulfill before starting construction of a Del Taco restaurant. Del Taco must first approve the site without any conditions, following the guidelines in Section 7 of the agreement. The Developer needs to secure the rights to use the site, either through purchase or lease, and provide Del Taco with a fully executed copy of the lease or asset purchase agreement, including the recorded deed. Additionally, the Developer must obtain all necessary permits and governmental approvals required to construct, maintain, and operate the Del Taco restaurant on the approved site, providing certified copies of all related acquisition documents to Del Taco upon request.
Furthermore, the Developer is required to get Del Taco's approval for both the general contractor and architect they plan to use, ensuring they meet Del Taco's specific requirements. The Developer must also submit a Site Approval Package and final site plan, layout, and construction plans to Del Taco for approval. It's important to note that Del Taco's approval of these items does not provide any guarantee or warranty regarding the future success of the site as a Del Taco location.
These pre-construction obligations are crucial for ensuring that the new Del Taco restaurant aligns with the brand's standards and complies with all legal and regulatory requirements. Failing to meet these obligations can lead to delays, financial losses, or even the revocation of site approval by Del Taco. Prospective developers should carefully review these requirements and plan accordingly to avoid any potential issues during the construction phase.