What is the deadline for a Del Taco franchisee to provide written notice of their election to renew?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
rate the Restaurant for one (1) additional term which shall be the lesser of (a) twenty (20) years or (b) the remaining term of the lease for the Restaurant premises, including all applicable extensions or renewals, subject to the following conditions, each of which must be met prior to such renewal:
- 2.2.1 Franchisee shall deliver to Del Taco a written notice of Franchisee's election to renew no fewer than twelve (12) months nor more than eighteen (18) months prior to
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee who wishes to renew their franchise agreement must provide written notice to Del Taco of their election to renew the agreement. This notice must be delivered no fewer than twelve months and no more than eighteen months before the end of the initial franchise term.
This requirement ensures that Del Taco has ample time to assess the franchisee's compliance with the agreement and to plan for the future of the restaurant. It also allows the franchisee sufficient time to prepare for the renewal process, which includes paying a renewal fee. The renewal fee is equal to the greater of $35,000 or Del Taco's then-current initial franchise fee for a new Del Taco Restaurant when the franchisee delivers the written notice.
Missing this deadline could result in the franchisee losing the opportunity to renew their franchise, regardless of their performance or investment in the business. Therefore, it is crucial for Del Taco franchisees to mark their calendars and adhere strictly to the notification window to ensure they can continue operating their restaurant under the Del Taco brand.