Does Del Taco typically own the real estate for franchise locations?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant each franchise for a specific location. You select the proposed location for your Restaurant. We generally do not own the real estate for your location and lease it to you. You must submit the proposed location to us for our review and acceptance, together with all information we request relating to the location. After our receipt of the complete package, we may visit the proposed location at our sole discretion. Although we are under no obligation to, we may visit a proposed location with you prior to our receipt of the complete package; however, no site will be considered for acceptance or rejection until a complete package has been submitted and reviewed. We will send you written acceptance or rejection of the location within 45 days after our receipt of all relevant information. If we do not receive all relevant information within a maximum of 60 days after your initial submission of the location for our acceptance, you should consider the location rejected. The failure to obtain our approval for an acceptable location in a timely fashion will result in the termination of the Franchise Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–38)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco generally does not own the real estate for franchise locations. Instead, the franchisee selects a proposed location, which must then be submitted to Del Taco for review and acceptance. If the location is approved, the franchisee typically leases the property.
This arrangement means that prospective Del Taco franchisees will likely need to negotiate lease terms with a landlord, adding another layer of complexity and cost to the startup process. Franchisees should carefully consider lease terms, including rent, duration, and renewal options, as these factors can significantly impact the profitability of the Del Taco restaurant.
Del Taco does provide franchisees with site criteria to aid in location selection. However, the ultimate responsibility for finding and securing a suitable location rests with the franchisee. This includes adapting the standard construction package, including plans and specifications, at the franchisee's expense, for use at the selected location.