Does the Del Taco agreement state that Del Taco makes any warranties or guarantees to the Franchisee by providing any waiver, approval, consent or suggestion to the Developer?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Del Taco makes no warranties or guarantees, and assumes no liability or obligation to the Franchisee, by providing any waiver, approval, consent or suggestion to the Developer in connection with this Agreement or by reason of any neglect, delay or denial of any request.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco explicitly states that it does not provide any warranties or guarantees to the franchisee (referred to as the Developer in this section) through any waiver, approval, consent, or suggestion it might offer. This means that any guidance or permissions Del Taco provides during the development process does not create any liability or obligation for Del Taco to the franchisee.
This provision protects Del Taco from potential claims that its advice or approvals led to financial losses or other damages for the franchisee. For example, if Del Taco approves a site or a construction plan, the franchisee cannot hold Del Taco responsible if the restaurant ultimately underperforms or encounters construction-related issues. The franchisee bears the ultimate responsibility for the success of the restaurant and must conduct their own due diligence.
This clause highlights the importance of independent decision-making for prospective Del Taco franchisees. While Del Taco offers support and guidance, franchisees should not rely solely on the franchisor's input. They should seek their own professional advice and conduct thorough market research to ensure the viability of their chosen location and business plan. This also underscores the need for franchisees to carefully review all aspects of the Franchise Agreement and understand the limitations of Del Taco's liability.