What is the deadline for a Del Taco franchisee to provide written notice to renew their franchise agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
f, the initial term of this Agreement shall commence on the Effective Date and expire on the date that is the earlier of (a) twenty (20) years after the opening date of the Restaurant or (b) the expiration date of the lease for the Restaurant premises, including all applicable extensions or renewals.
- 2.2 Renewal. Franchisee may, at its option, renew Franchisee's right to operate 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 wants to renew their franchise agreement must provide written notice to Del Taco. This notice must be delivered no fewer than twelve months and no more than eighteen months before the end of the initial franchise term. The initial term is the earlier of twenty years after the restaurant's opening date or the expiration date of the restaurant's lease, including any extensions or renewals.
Submitting this written notice within the specified timeframe is a critical step for a Del Taco franchisee seeking to extend their operation. Missing this deadline could mean losing the opportunity to renew the franchise. The franchisee must also meet other conditions to be eligible for renewal, such as paying a renewal fee and adhering to the terms of the franchise agreement.
In addition to providing timely notice, the franchisee must pay a renewal fee. This fee is equal to the greater of $35,000 or Del Taco's then-current initial franchise fee for a new Del Taco Restaurant. The franchisee must pay this fee when delivering the written notice to renew. Meeting all these requirements ensures the franchisee remains in good standing and eligible to continue operating their Del Taco restaurant under a renewed agreement.