Under what conditions will Del Taco grant approval or consent required by the Development Agreement?

According to Del Taco's 2025 Franchise Disclosure Document, any approval or consent required from Del Taco under the Development Agreement must be requested in writing by the developer. Del Taco will only grant such approval or consent, if at all, in writing. This requirement ensures that all agreements are documented and prevents misunderstandings based on verbal communication.

Del Taco has the right to refuse approval of a site if it doesn't meet the brand's general site selection criteria, including demographic characteristics, traffic patterns, parking accommodations, the character of the neighborhood, and competition from other businesses. Approval can also be denied if the developer fails to meet Del Taco's financial and operational requirements or is in default under any agreement with Del Taco. Furthermore, Del Taco can refuse approval for sites within one mile of an existing or proposed Del Taco restaurant outside the Development Area if it determines the new site would have a substantial negative financial impact on the existing location.

Before construction can begin, Del Taco must approve the site without conditions, and the developer must obtain the right to use the site through purchase or lease, securing all necessary permits and governmental approvals. The developer must also provide Del Taco with a fully executed copy of the lease or asset purchase agreement, including the recorded deed. Additionally, Del Taco must approve the developer's general contractor and architect. These conditions ensure that the site is suitable and that the developer has the necessary resources and approvals to proceed with construction, protecting both the franchisee and the Del Taco brand.