What does Del Taco state regarding its consent of a site and its suitability for the restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby acknowledges and agrees that consent by Del Taco 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.
Consent by Del Taco of the 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.
Both Franchisee and Del Taco acknowledge that application of criteria that have been effective with respect to other sites and premises may not be predictive of potential for all sites and that, subsequent to approval by Del Taco of a site and demographic factors, such as competition from other similar businesses, included in or excluded from criteria used by Del Taco could change, thereby altering the potential of a site.
Such factors are unpredictable and are beyond the control of Del Taco.
Del Taco shall not be responsible for the failure of a site approved by Del Taco to meet Franchisee's expectations as to revenue or operational criteria.
Franchisee further acknowledges and agrees that its acceptance of a franchise for the operation of the Restaurant at the site is based on its own independent investigation of the suitability of the site.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco's consent of a site for a restaurant does not constitute any assurance, representation, or warranty regarding the site's suitability for the restaurant or any other purpose. Del Taco's consent indicates only that the company believes the site complies with the minimum criteria established by Del Taco for its own purposes at the time of evaluation.
Del Taco and the franchisee acknowledge that criteria effective for other sites may not accurately predict the potential of all sites. Demographic factors and competition could change after Del Taco approves a site, which could alter the site's potential. These factors are unpredictable and beyond Del Taco's control. Del Taco is not responsible if an approved site fails to meet the franchisee's expectations for revenue or operational criteria.
The franchisee acknowledges that their acceptance of the franchise and operation of the restaurant at the site is based on their own independent investigation of the site's suitability. This means that while Del Taco has its own criteria for site approval, the franchisee is ultimately responsible for ensuring the location meets their business needs and revenue expectations through their own due diligence.