For a Del Taco franchise sublease, how long does the Guaranty remain in effect?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
The lease or sublease agreement shall include the following provisions:
- (a) The landlord shall agree to send to Del Taco a copy of any notice of default;
- (b) In the event of default by the Developer, Del Taco shall have the right, but not the obligation, to cure the default and assume the rights of the Developer under the lease;
- (c) The lease shall restrict the use of the real estate to a Del Taco restaurant for as long as the Franchise Agreement remains in effect;
- (d) The landlord shall consent to the use by the Developer of Del Taco's signage and proprietary marks;
- (e) The furniture, fixtures and equipment shall remain the personal property of the Developer (or the Developer's equipment lessor);
- (f) The Developer shall have the unrestricted right to assign the lease to Del Taco or another franchisee of Del Taco;
- (g) The Developer shall have the right to remodel every ten years, pursuant to the terms of the Franchise Agreement;
- (h) The Developer shall have the right to de-identify the premises upon the termination or expiration of the Franchise Agreement and Del Taco shall have the right to enter the premises and deidentity the premises if the Developer fails to do that;
- (i) The Landlord shall agree not to operate or allow the operation of any land owned or controlled by the landlord within a one-mile radius of the premises for a competing Mexican quick service restaurant;
- (j) The lease shall have a term at least equal to the term of the Franchise Agreement; and
- (k) The lease shall provide that no amendment of any of the foregoing provisions may take place without the written consent of Del Taco.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
Based on the 2025 Del Taco Franchise Disclosure Document, the length of time that a Guaranty remains in effect for a sublease is not specified. However, the FDD does state that the lease should have a term that is at least equal to the term of the Franchise Agreement.
Item 23 of the FDD outlines several provisions that must be included in the lease or sublease agreement. These include sending default notices to Del Taco, Del Taco's right to cure defaults, restrictions on the real estate use to only a Del Taco restaurant while the Franchise Agreement is in effect, consent for using Del Taco's signage, the developer's right to assign the lease to Del Taco or another franchisee, the right to remodel every ten years, and the right to de-identify the premises upon termination of the Franchise Agreement.
To fully understand the duration of the Guaranty for a Del Taco franchise sublease, a prospective franchisee should ask Del Taco for clarification on this matter. Specifically, they should inquire about the standard terms of the Guaranty and how it aligns with the lease and Franchise Agreement terms.