What constitutes abandonment of a Del Taco restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.2.4 If Franchisee at any time without the written consent of Del Taco ceases to operate or otherwise abandons the Restaurant for three (3) consecutive business days, or loses the right to possession of the Restaurant, or otherwise forfeits the right to do or transact business in the jurisdiction where the Restaurant is located; provided, however, that if, through no fault of Franchisee, the premises are damaged or destroyed by an event such that repairs or reconstruction cannot be completed within ninety (90) days thereafter, then Franchisee shall have thirty (30) days after such event in which to apply for Del Taco's approval to relocate and/or reconstruct the Restaurant, which approval shall not be unreasonably withheld;
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee abandoning their restaurant occurs if they cease operations without Del Taco's written consent for three consecutive business days. This also applies if the franchisee loses the right to possess the restaurant or forfeits the right to conduct business in the restaurant's jurisdiction.
However, there is an exception: if the restaurant premises are damaged or destroyed through no fault of the franchisee, and repairs or reconstruction cannot be completed within 90 days, the franchisee has 30 days after the event to apply for Del Taco's approval to relocate or reconstruct the restaurant. Del Taco's approval cannot be unreasonably withheld in this situation.
This clause protects Del Taco's brand and ensures consistent operation. For a franchisee, it highlights the importance of maintaining continuous operation and securing the premises. It also provides a framework for handling unforeseen circumstances like property damage, offering a path to relocation or reconstruction with the franchisor's approval.