What exhibit in the Del Taco FDD contains the Development Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
d:12)(cid:12)(cid:12)(cid:12) (cid:3)(cid:1)(cid:15)(cid:10)(cid:18)(cid:18)(cid:23)(cid:10)(cid:14)(cid:17)(cid:18)(cid:1) (cid:3)(cid:1)(cid:15)(cid:10)(cid:18)(cid:14)(cid:23)(cid:10)(cid:17)(cid:18)(cid:22)(cid:1) | | | The following map shall serve only as a general illustration of the area described above. In the event of any conflict between the foregoing description and the following map, the foregoing description shall control.
Developer is granted protected rights within the Development Area described in this Exhibit A, attached hereto and incorporated herein by this reference, as expressly set forth in the Development Agreement ("Agreement"); provided, however, that (i) such territorial protection will terminate in the event Developer fails to meet its obligations under this Agreement or any other agreement to develop restaurants within the Development Area; and (ii) Developer understands and acknowledges that certain locations within the Development Area are excluded from the Agreement as they may be more appropriately developed by Company, or by a company that specializes in institutional foodservice operations or has exclusivity rights or master lease rights. These locations include airports, the campuses of universities or colleges, hospitals, public transportation facilities, amusement parks, government facilities, malls, stadiums, or other sports facilities, and similarly situated sites and other "Alternative Points of Distribution" as defined in the Agreement. Notwithstanding any provision of the Agreement to the contrary, at any time, Del Taco may develop and operate, or franchise others to develop and operate, Del Taco restaurants at such sites whether or not the sites are located within the Development Area.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the Development Agreement itself is not contained within a specific exhibit. However, Exhibit B outlines the Development Schedule, and Exhibit C includes the Personal Guarantee that each holder of an ownership interest in the Developer must execute concurrently with the Development Agreement, if the Developer is not an individual. Additionally, Exhibit A describes the Development Area granted to the Developer. These exhibits are integral parts of the Development Agreement, as referenced in Item 23.
Prospective Del Taco developers should carefully review Exhibits A, B, and C in conjunction with the Development Agreement to fully understand their obligations and rights. Exhibit A defines the territory where the developer has certain protections, while Exhibit B specifies the timeline for opening new Del Taco restaurants. Exhibit C clarifies the personal guarantees required from owners if the developer is a business entity rather than an individual.
It is important for potential developers to understand that failure to meet the obligations outlined in the Development Agreement, including the development schedule in Exhibit B, can lead to termination of territorial protection. Furthermore, the personal guarantees in Exhibit C hold individual owners accountable for the developer's performance. Therefore, a thorough review of these exhibits is crucial before entering into a Development Agreement with Del Taco.