According to the Del Taco Franchise Agreement, what is the document referred to as?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
As an inducement to Del Taco, LLC ("Del Taco" or "Franchisor") to execute the Del Taco Franchise Agreement between Del Taco and ("Franchisee"), dated , 20 (the "Agreement"), the undersigned jointly and severally, hereby unconditionally guarantee to Del Taco and its successors and assigns that all of Franchisee's monetary and other obligations under the Agreement will be punctually paid and performed.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, the franchise agreement between Del Taco, LLC and the franchisee is referred to as "the Agreement". This is evident in Exhibit E, the Guarantee, Indemnification, and Acknowledgment section, which explicitly states that the guarantee is an inducement for Del Taco to execute the Del Taco Franchise Agreement, and then refers to that agreement as "the Agreement" in subsequent clauses.
This definition is important because the term "the Agreement" is used throughout the franchise agreement to define the contractual obligations, rights, and responsibilities of both Del Taco and the franchisee. Understanding that "the Agreement" refers specifically to the franchise agreement is crucial for interpreting the various clauses and provisions within the document.
For a prospective franchisee, this means paying close attention to any section of the franchise agreement that references "the Agreement," as it directly pertains to their legal obligations and rights as a Del Taco franchisee. This includes understanding the initial term, renewal conditions, operational requirements, and financial obligations outlined within the document. The franchisee should carefully review the entire agreement and seek legal counsel to fully understand the implications of each clause and how it affects their investment and operation of the Del Taco franchise.