What condition is required to modify the Del Taco franchise agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the Agreement | Summary |
|---|---|---|
| s. Modification of the | 23 | No changes can take place unless mutually agreed |
| agreement | to in writing. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, any modifications to the franchise agreement must be mutually agreed upon in writing by both Del Taco and the franchisee. This requirement is detailed in Section 23 of the agreement. This means that neither Del Taco nor the franchisee can unilaterally change the terms of the agreement; both parties must consent to any changes.
This provision ensures that both Del Taco and the franchisee are protected and that changes are made only when they are acceptable to both parties. It prevents one party from imposing changes on the other without consent. This is a fairly standard clause in franchise agreements, as it protects the interests of both the franchisor and the franchisee and ensures that all modifications are documented and agreed upon.
However, prospective franchisees should be aware that while this clause protects them from unilateral changes, it also means that they cannot make changes to the agreement without Del Taco's consent. This could be a disadvantage if a franchisee wants to negotiate specific terms that differ from the standard agreement. Franchisees should carefully review the franchise agreement and seek legal counsel to understand their rights and obligations before signing.