What claims are franchisees waiving against Del Taco regarding the transfer of rights in the Agreement?

According to Del Taco's 2025 Franchise Disclosure Document, franchisees waive certain claims against Del Taco related to the transfer of rights within the franchise agreement. Specifically, the franchisee waives any claims, demands, or damages against Del Taco or its affiliates that arise from or are related to Del Taco's transfer of its rights in the Agreement, the System, or Confidential Information to another party. This waiver means that if Del Taco decides to transfer its rights to another company, the franchisee cannot sue Del Taco for any losses or damages they might experience as a result of this transfer.

This waiver is significant because it gives Del Taco considerable flexibility in managing and potentially selling its franchise system. Del Taco is not obligated to remain in the business of operating or licensing Del Taco Restaurants or other businesses or to offer any services or products to the franchisee if Del Taco transfers or assigns its rights or obligations under the Agreement and the System. For a prospective franchisee, this means there is a risk that Del Taco could transfer the franchise to a new entity that may operate differently or have different priorities, and the franchisee would have limited recourse against Del Taco itself.

It is important for potential Del Taco franchisees to understand the implications of this waiver before investing in a franchise. They should consider the possibility that Del Taco might transfer its rights and how that could affect their business. Prospective franchisees may want to seek legal advice to fully understand the scope of this waiver and its potential impact on their investment. Understanding this clause is crucial for assessing the risks and rewards of investing in a Del Taco franchise.