What is the duration of Del Taco's right of first refusal to acquire a franchisee's business?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the Agreement | Summary |
|---|---|---|
| n. Our right of first refusal to acquire your business | 12.6 | We have an option for 30 days to purchase upon same terms and conditions offered to the third party. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco has a right of first refusal to acquire a franchisee's business. This means that if a franchisee receives an offer from a third party to purchase their Del Taco business, Del Taco has the option to match that offer and purchase the business themselves.
The duration of this right of first refusal is 30 days. Specifically, Del Taco has 30 days to exercise its option to purchase the franchise business under the same terms and conditions offered by the third party.
This provision allows Del Taco to maintain control over who becomes a franchisee within their system. It ensures that Del Taco has the opportunity to acquire existing locations rather than allowing them to be sold to individuals or entities that may not meet their standards or align with their strategic goals. For a franchisee, this means that selling their business may involve an additional step of waiting for Del Taco to decide whether to exercise its right of first refusal.