Under what conditions will a Del Taco franchisee be required to reimburse Del Taco for on-site evaluation expenses?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee may be required to reimburse Del Taco for on-site evaluation expenses under specific circumstances related to site selection. Del Taco may provide site selection counseling and assistance, including suggested site selection criteria.
Del Taco will perform on-site evaluations as it deems advisable, either on its own initiative or at the franchisee's request. However, Del Taco is not obligated to provide on-site evaluations for every proposed site. If Del Taco determines that an on-site evaluation is necessary, the franchisee is responsible for reimbursing Del Taco for all reasonable expenses incurred during the evaluation.
These reimbursable expenses include, but are not limited to, the costs of travel, lodging, and meals for Del Taco personnel involved in the on-site evaluation. This means that franchisees need to factor in potential site evaluation costs when budgeting for the initial investment and ongoing expenses of establishing a Del Taco restaurant.