Can the Del Taco franchise agreement be modified?

According to Del Taco's 2025 Franchise Disclosure Document, the franchise agreement can be modified, but only through mutual written agreement. Specifically, Section 23 of the agreement states that no changes can occur unless both Del Taco and the franchisee agree to them in writing. This requirement ensures that any modifications are formally documented and agreed upon by both parties, protecting the interests of both Del Taco and the franchisee.

This provision is typical in franchise agreements, as it provides a clear process for making changes and avoids potential disputes over verbal agreements or informal understandings. The written requirement ensures that all modifications are clear, unambiguous, and legally binding. This protects both the franchisee and Del Taco by ensuring that neither party can later claim that they did not agree to a particular change.

However, the FDD also includes addenda for certain states like Indiana, Virginia, Illinois, Rhode Island, and Washington which modify certain provisions of the standard franchise agreement to comply with state laws. For example, Indiana does not allow a provision that requires a franchisee to waive compliance with franchise laws of Indiana. These state-specific addenda highlight that certain aspects of the franchise agreement can be modified based on regional legal requirements. Therefore, prospective franchisees should carefully review any state-specific addenda to understand how the standard agreement may be altered in their jurisdiction.

In summary, while the Del Taco franchise agreement requires mutual written consent for modifications, franchisees should also be aware of state-specific addenda that may automatically modify certain terms to comply with local laws. It is crucial for potential franchisees to thoroughly review the entire FDD, including all exhibits and addenda, and to seek legal counsel to fully understand their rights and obligations under the franchise agreement.