What evidence must a Del Taco franchisee present to demonstrate their right to remain in possession of the restaurant premises for the renewal term?

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee seeking to renew their franchise agreement must demonstrate their right to remain in possession of the restaurant premises for the duration of the renewal term. This can be achieved by presenting evidence to Del Taco that confirms their right to remain at the current location. Alternatively, the franchisee can seek approval from Del Taco for a new location, ensuring it meets the then-current criteria for Del Taco restaurants, also for the duration of the renewal term.

This requirement ensures that the franchisee has a secure location for the duration of the renewed term, which is crucial for the continued operation of the Del Taco restaurant. It protects both the franchisee and Del Taco by preventing potential disruptions due to lease expirations or location disputes. The franchisee bears the responsibility of either securing the existing location or finding a new one that meets Del Taco's standards.

It is important for prospective Del Taco franchisees to understand the terms of their initial lease agreement and the renewal options available. They should also be aware of Del Taco's criteria for new locations, in case they need to relocate. This requirement is fairly standard in the franchise industry, as franchisors typically want to ensure that franchisees have a stable and suitable location for their business.