edge_case

After the expiration or earlier termination of the Agreement, can Del Taco continue to construct and operate other Restaurants and use the Del Taco System within the Development Area, and license others to do the same?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (d) After the expiration or earlier termination of this Agreement, to continue to construct and operate other Restaurants and to use the Del Taco System at any location within the Development Area and to license others to do the same.

Source: Item 23 — RECEIPTS (FDD pages 59–325)

What This Means (2025 FDD)

According to the 2025 Del Taco Franchise Disclosure Document, Del Taco retains the right to continue operating and licensing Del Taco restaurants within a Development Area after the Development Agreement expires or terminates. Specifically, Del Taco has the right to construct and operate restaurants using the Del Taco System within the Development Area and to license others to do the same.

This means that even if a developer's agreement ends, Del Taco is not restricted from further developing the Del Taco brand within that area. This could involve opening company-owned stores or granting new franchises to other parties.

For a prospective Del Taco developer, this clause highlights the limited term of their exclusive development rights. While the agreement is active, the developer has certain protections, but these protections cease upon expiration or termination, allowing Del Taco to pursue other development strategies in the same area. This underscores the importance of fulfilling the development schedule and maintaining compliance with the agreement to maximize the benefits of the development rights during the agreed-upon term.

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.