In the Del Taco franchise agreement signature section, what capacity should the agreement be signed in?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Del Taco LLC Jack Tang, Vice President, General Counsel Its: Executed as of the day and year first set forth above.
Exhibit E
Guarantee, Indemnification, and Acknowledgment
As an inducement to Del Taco, LLC ("Del Taco" or "Franchisor") to execute the Del Taco Franchise Agreement between Del Taco and ("Franchisee"), dated , 20 (the "Agreement"), the undersigned jointly and severally, hereby unconditionally guarantee to Del Taco and its successors and assigns that all of Franchisee's monetary and other obligations under the Agreement will be punctually paid and performed.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the agreement is signed by Del Taco LLC, with Jack Tang, Vice President, and General Counsel signing in their capacity as such. The document includes a signature page example showing the format.
For the franchisee, the FDD excerpt includes a guarantee, indemnification, and acknowledgment section that must be signed. This section requires the undersigned to unconditionally guarantee all of the franchisee's monetary and other obligations under the agreement. This means that individuals signing this guarantee are personally liable for the franchisee's debts and performance under the Del Taco franchise agreement.
Prospective franchisees should carefully review this section with their legal and financial advisors to fully understand the implications of signing the guarantee. It is a standard practice in franchising for franchisors to seek personal guarantees from franchisees, especially those operating through a corporate entity, to ensure accountability and financial security.