Does Del Taco assist franchisees in negotiating lease terms?

According to Del Taco's 2025 Franchise Disclosure Document, franchisees are required to submit a final draft of their lease for the restaurant premises to Del Taco before signing. The lease must also contain specific provisions outlined in Exhibit G, known as the Addendum to Lease. After executing the lease, franchisees must provide Del Taco with copies of the fully-executed lease, the executed Addendum to Lease, and the landlord's contact information. Furthermore, franchisees must provide Del Taco with a copy of the commencement date letter from the landlord, or similar documentation, indicating the lease's commencement and expiration dates, no later than ten days after opening the restaurant.

These requirements ensure that Del Taco has insight into the lease terms agreed upon by the franchisee and that the lease aligns with Del Taco's standards and requirements. While Del Taco does not explicitly negotiate the lease terms on behalf of the franchisee, the review process allows them to ensure that critical elements are included and that the franchisee is entering into a lease that supports the franchise operation. The Addendum to Lease likely contains provisions that protect Del Taco's interests and ensure the franchisee's compliance with brand standards.

This process is fairly common in franchising, as franchisors often have specific requirements for the location and lease terms to protect their brand and ensure the franchisee's success. By mandating the use of an addendum and reviewing the lease, Del Taco maintains a level of control over the restaurant's location and lease agreement without directly participating in the negotiation process. Franchisees should carefully review Exhibit G and understand all lease requirements before committing to a location.