Does the Del Taco Franchise Agreement create any rights for third parties?

According to Del Taco's 2025 Franchise Disclosure Document, the Franchise Agreement explicitly states that it does not create any rights for third parties. Section 11.11 of the agreement clarifies that no person other than the parties involved (Del Taco and the franchisee), along with their respective successors and assigns, are intended to receive any rights, remedies, obligations, or liabilities under the agreement. This is a common provision in franchise agreements to prevent outside parties from claiming benefits or enforcing obligations under the contract.

This provision protects Del Taco from potential claims by individuals or entities who might argue they are entitled to certain benefits or considerations as a result of the agreement between Del Taco and the franchisee. For example, suppliers, customers, or employees of the franchisee cannot claim any rights under the Franchise Agreement. This ensures that Del Taco maintains control over its franchise system and is not subject to unforeseen liabilities to third parties.

For a prospective Del Taco franchisee, this clause means they cannot transfer or assign their rights or obligations under the Franchise Agreement to someone else without Del Taco's prior written consent. While a merger, consolidation, or sale of the franchisee's assets to a third party is not considered an assignment, any other transfer requires Del Taco's approval. This protects Del Taco's interests by ensuring they have a say in who operates a Del Taco franchise and maintains the standards of the brand.