What is the 'Search Period' defined as in the Del Taco Site Selection Addendum?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Del Taco LLC ("Del Taco"), a California limited liability company, and the undersigned (the |
|---|
| "Franchisee") have this day of, 20 (the "Effective Date") entered into a Del Taco |
| Franchise Agreement ("Franchise Agreement") and desire to supplement its terms as set out below in this |
| Site Selection Addendum (this "Site Selection Addendum"). |
| 1. |
| Time to Locate Site: Within one hundred eighty days (180) days after the Effective Date |
| (the "Search Period"), Franchisee shall acquire or lease/sublease, at Franchisee's expense, commercial |
| real estate that is properly zoned for the use of the business to be conducted by Franchisee under the |
| Franchise Agreement (a "Restaurant") at a site consented to Del Taco as hereinafter provided. Such |
| location shall be within the following area: |
| (the "Site Selection Area"). The Site Selection Area is described solely for the |
| purpose of selecting a site for the Restaurant. |
| Del Taco shall not establish, nor franchise another to |
| establish, a Del Taco Restaurant operating under the System within the Site Selection Area until Del Taco |
| consents to a location for the Restaurant, or until the expiration of the Search Period, whichever event first |
| occurs. If a suitable site has not been identified and consented to by the end of the Search Period, Del Taco |
| may, at its option, extend the Search Period by up to sixty (60) days. Franchisee acknowledges and agrees |
| that Del Taco shall have no responsibility for, or liability to Franchisee for, any site review, analysis, |
| evaluation, or recommended undertaken by or on behalf of any real estate broker or advisor used or retained |
| by Franchisee. Failure by Franchisee to acquire or lease an approved site for the Franchised Business within |
| the Search Period shall constitute a default under Section 13 of the Franchise Agreement and under this |
| Addendum, and Del Taco may terminate the Franchise Agreement and this Addendum, pursuant to the |
| terms of Section 13 of the Franchise Agreement. |
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the 'Search Period' is defined within the Site Selection Addendum as the timeframe a franchisee has to find a suitable location. Specifically, the franchisee has 180 days from the Effective Date of the Franchise Agreement to acquire or lease commercial real estate that is properly zoned for a Del Taco Restaurant. This site must also be consented to by Del Taco.
Del Taco may extend the Search Period by up to 60 days, at its option, if a suitable site has not been identified and approved within the initial 180-day period. The selected location must be within the designated Site Selection Area. Del Taco agrees not to establish or franchise another Del Taco Restaurant within this area until a location is approved or the Search Period expires.
Failure to secure an approved site within the Search Period, including any extensions, constitutes a default under the Franchise Agreement. This gives Del Taco the right to terminate the Franchise Agreement and the Site Selection Addendum. This emphasizes the importance of franchisees actively searching for and securing a location within the given timeframe to avoid potential termination of their franchise agreement.