What site selection criteria does Del Taco furnish to franchisees?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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. | | |
- 2. Site Evaluation Services: Del Taco shall furnish to Franchisee suggested site selection criteria, which is currently reflected in advice based on site and demographic factors, and will include Del Taco's minimum standards for a location for the Restaurant. Del Taco will also provide such site selection counseling and assistance as Del Taco may deem advisable. Del Taco shall perform any on-site evaluation as Del Taco may deem advisable in response to Franchisee's requests for site approval; provided, however, that Del Taco shall not be required to provide on-site evaluation for any proposed site. If on-site evaluation is deemed necessary and appropriate by Del Taco (on its own initiative or at Franchisee's request) for any Restaurant to be established, Franchisee shall reimburse Del Taco for all reasonable expenses incurred by Del Taco in connection with such on-site evaluation, including, without limitation, the cost of travel, lodging and meals.
- 3. Additional Site Evaluation Services: Del Taco recommends, but does not require, that Franchisee engage the services of a third-party real estate or site evaluation professional or business, to assist with the analysis and evaluation of a particular site, and/or to utilize competitive sales data from a third-party. Franchisee acknowledges and agrees that any site evaluation model or service is only one tool or factor that may be used to evaluate a potential site, and it is not a predictor of future sales.
- 4. Site Selection Package Submission and Approval: Franchisee shall submit to Del Taco, in the form specified by Del Taco, such site approval forms and data that Del Taco may specify, which may include a copy of the site plan, financial information, and such other information or materials as Del Taco may reasonably require, together with an option contract, letter of intent or other evidence satisfactory to Del Taco which confirms Franchisee's favorable prospects for obtaining the site. Franchisee acknowledges that time is of the essence. Del Taco shall have thirty (30) days after receipt of a complete site selection
package and request for approval and such information and materials as Del Taco may request to approve or disapprove the proposed site in writing as the location for the Restaurant, in Del Taco's sole discretion. In the event Del Taco does not disapprove a proposed site by written notice to Franchisee within said thirty (30) days, such site shall be deemed approved by Del Taco.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco will furnish suggested site selection criteria to franchisees. This advice is based on site and demographic factors and includes Del Taco's minimum standards for a restaurant location. Del Taco may also provide site selection counseling and assistance as it deems advisable.
Del Taco may perform on-site evaluations in response to a franchisee's request for site approval, but is not required to do so. If Del Taco deems an on-site evaluation necessary, the franchisee must reimburse Del Taco for all reasonable expenses incurred, including travel, lodging, and meals. Franchisees must submit site approval forms and data specified by Del Taco, including a copy of the site plan, financial information, and evidence confirming favorable prospects for obtaining the site.
Del Taco recommends, but does not require, that franchisees engage a third-party real estate or site evaluation professional to assist with site analysis and evaluation, and/or to utilize competitive sales data from a third-party. Del Taco's consent of a site indicates only that Del Taco believes the site complies with acceptable minimum criteria established by Del Taco solely for its purposes as of the time of the evaluation. However, Del Taco states that its consent of a site does not constitute an assurance, representation, or warranty of any kind, express or implied, as to the suitability of the site for the Restaurant or for any other purpose. Franchisees are responsible for their own independent investigation of the suitability of the site.