What is Del Taco's responsibility regarding the future success of a restaurant site after approving the Developer's Site Approval Package?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Del Taco has approved the Developer's Site Approval Package and final site plan, layout and construction plans, with the understanding that Del Taco's approval of a Site Approval Package and any site plan, layout or plans does not constitute any representation, warranty or guarantee by Del Taco regarding the future success of the site for a Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco's approval of a Site Approval Package does not constitute a representation, warranty, or guarantee regarding the future success of the restaurant at that site. This means that while Del Taco reviews and approves the site, plan, layout, and construction plans, this approval does not ensure the location will be profitable or successful. The developer bears the responsibility for the acquisition, development, and construction of the restaurant on the approved site.
Del Taco provides the developer with standard site selection criteria, sample site plans and layouts, and a standard construction package. However, the developer is responsible for adapting these plans and specifications to the approved site at their own expense. The developer is also responsible for obtaining all necessary permits and governmental approvals required for construction and operation of the restaurant.
This arrangement is typical in the franchise industry, where the franchisor provides guidance and support in site selection and development, but the franchisee or developer ultimately bears the risk and responsibility for the site's performance. Prospective Del Taco developers should carefully evaluate the site's potential and conduct their own due diligence to ensure its viability before investing in development and construction. Del Taco retains the right to refuse approval of a site if it does not meet their criteria or if the developer is in default of any agreements.