What document(s) related to the sale must the buyer deliver to the seller for a Del Taco franchise?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- Prior to the Closing, Buyer shall execute and deliver to Seller an Authorization for Direct Deposit Withdrawal, as required by the Franchise Agreements.
- (i) Seller shall have reviewed and approved Buyer's loan term sheets and(or) commitment letters, and such other information as may be reasonably requested by Seller, in its sole discretion, to determine Buyer's ability to obtain financing sufficient to complete the transaction contemplated in this Agreement. Buyer shall cooperate with Seller in connection with the foregoing condition by promptly providing to Seller any and all such documents and information requested by Seller.
- (iii) Seller shall have reviewed and approved Buyer's financial status and liquidity, including, without limitation, Buyer's bank statements, financial statements, loan term sheets and(or) commitment letters, and such other information as may be requested by Seller, in its sole discretion, to determine Buyer's financial capability to complete the transaction contemplated in this Agreement. Buyer shall cooperate with Seller in connection with the foregoing condition by promptly providing to Seller any and all such documents and information requested by Seller.
- As an additional condition precedent for the Closing, prior to the Closing Date the parties shall have received the written consent to sublease each of the Locations from any third party where consent is required under any lease for a Location. Buyer shall be responsible for any reimbursements or payments due to any third parties in connection with obtaining any required consents. | (ii) | Buyer agrees and acknowledges that as a condition to Seller agreeing to sell the Locations to Buyer, at the Closing Buyer shall pay at least the sum of the Sales Taxes and any closing costs or prorations that are the responsibility of Buyer, from personal sources other than from any financing secured by the Assets, the Locations or any other Del Taco restaurant businesses operated by Buyer, and which shall be immediately available at the Closing. |
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, prior to the closing of the sale, the buyer must execute and deliver to the seller an Authorization for Direct Deposit Withdrawal, as required by the Franchise Agreements.
Additionally, the seller's obligations are conditional upon several factors, including the seller's approval of the buyer's loan term sheets, commitment letters, financial status, and liquidity. To facilitate this, the buyer must promptly provide any documents and information reasonably requested by the seller to determine the buyer's ability to obtain sufficient financing and their financial capability to complete the transaction.
Furthermore, as a condition precedent for closing, the parties must obtain written consent to sublease each of the Del Taco locations from any third party where consent is required under the lease. The buyer is responsible for any reimbursements or payments due to third parties to obtain these consents. The buyer must also pay sales taxes and closing costs from personal sources, not from financing secured by the assets or Del Taco businesses.