What documents must be executed between the seller and buyer for each Del Taco location?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Purchase Agreement (which together with the Exhibits attached hereto and other document |
|---|
| incorporated herein by reference, is referred to as the "Agreement") is entered into as of, |
| between DEL TACO LLC, a California limited liability company ("Del Taco" or "Seller"), whose addres |
| is 25521 Commercentre Drive, Suite 150, Lake Forest, CA 92630 and [ ], a [ ] limited liability |
| company, whose address is ("Buyer"). The parties agree that Buyer wil |
| purchase the Locations according to the terms of this Agreement. |
- Prior to the Closing, Buyer shall execute and deliver to Seller an Authorization for Direct Deposit Withdrawal, as required by the Franchise Agreements.
This transaction shall be conducted insofar as is necessary to effectuate its purpose through one or more escrows to be opened with an escrow company to be selected by Del Taco, in its reasonable discretion (the "Escrow(s)"). The parties agree to execute such escrow instructions (the "Escrow Instructions") as may be necessary or appropriate to effect the purpose and intent hereof and that this Agreement shall be attached to the Escrow Instructions as an exhibit and shall remain in full force and effect; provided, however, that in the event of any inconsistency between the provisions of the Agreement and the Escrow Instructions, the provisions of this Agreement shall govern.
Prior to the Closing Date, persons designated by Buyer and Seller shall jointly conduct an inventory of the Business Assets and Additional Assets at the Locations, which inventory shall be conducted in a manner to be agreed upon by the parties. The final inventory for each Location shall be
initialed by those representatives designated by Buyer and Seller and shall be attached to the Bills of Sale described below.
By execution hereof, each of the parties constituting Buyer hereunder represents and warrants that (a) they have received Seller's current FDD and all Exhibits thereto at the earlier of the first personal meeting with Del Taco personnel regarding the transition which is the subject of this Agreement or fourteen (14) days or more prior to the execution hereof or payment of any fee in connection herewith; (b) they have had full opportunity to be advised of the terms and conditions of this Agreement and the Exhibits hereto by counsel of their own choosing prior to the execution hereof; and (c) they are executing this Agreement after having made such investigations of Seller and its operations as they desire.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the Purchase Agreement, along with its exhibits and other incorporated documents, is the primary agreement between Del Taco (the seller) and the buyer for the purchase of existing Del Taco locations.
Prior to closing, the buyer must provide an Authorization for Direct Deposit Withdrawal, as required by the Franchise Agreements. Additionally, both the buyer and seller will need to execute escrow instructions necessary to complete the transaction through an escrow company selected by Del Taco. The Purchase Agreement is attached as an exhibit to these escrow instructions and takes precedence over them in case of inconsistencies.
Before the closing date, representatives from both sides will conduct a joint inventory of the Business Assets and Additional Assets at each location. This inventory will be conducted in a manner agreed upon by both parties, and the final inventory for each location will be initialed by the designated representatives and attached to the Bills of Sale. The buyer also acknowledges receipt of Del Taco's current Franchise Disclosure Document (FDD) and all exhibits, representing that they had the opportunity to seek counsel and conduct investigations before executing the agreement.