factual

What is the earliest date a Del Taco franchisee can provide written notice of their election to renew?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 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 the end of the initial term;

Source: Item 22 — CONTRACTS (FDD pages 58–59)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee can provide written notice of their election to renew their franchise agreement no more than eighteen months prior to the end of the initial term. The initial term of the franchise agreement is the earlier of twenty years after the restaurant's opening date, or the expiration date of the restaurant's lease, including all applicable extensions or renewals.

This means that a Del Taco franchisee needs to keep a close watch on their lease and franchise agreement end dates. To renew, they must give written notice within a specific window, no earlier than 18 months before the initial term ends. Missing this window could mean losing the opportunity to renew the franchise.

It's also important to note that the renewal is not automatic. The franchisee must also pay a renewal fee, which is the greater of $35,000 or Del Taco's then-current initial franchise fee for a new restaurant. Additionally, the franchisee must be in good standing with Del Taco, meaning they cannot have received written notice of default under the agreement on more than 3 separate occasions prior to their election to renew, and must have substantially complied with all terms and conditions of the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.