Is a Del Taco franchisee allowed to relocate their restaurant without Del Taco's consent?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not relocate the Restaurant without Del Taco's prior written consent. Del Taco shall grant or withhold consent of the relocation of the Restaurant under this Section 1.1. In connection with Del Taco's consent to the location, Franchisee shall execute, and cause the landlord to execute, the Addendum to Lease appended hereto as Exhibit G. Franchisee acknowledges and agrees that Del Taco's consent to Franchisee's proposed location, under this Section 1.1 or pursuant to the Site Selection Addendum, does not constitute any assurance, representation, or warranty of Del Taco of any kind.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee is not allowed to relocate their restaurant without prior written consent from Del Taco. Specifically, Section 1.1 of the franchise agreement states that the franchisee must operate the restaurant at the location specified in Exhibit A, within the Protected Area. If a location hasn't been secured when the agreement is executed, the franchisee must acquire a site subject to Del Taco's written consent, as detailed in the Site Selection Addendum (Exhibit B).
Del Taco retains the right to grant or withhold consent for relocation. This provision ensures that Del Taco maintains control over its brand's presence and market strategy. In connection with Del Taco's consent to the location, the franchisee must execute, and cause the landlord to execute, the Addendum to Lease appended as Exhibit G.
This requirement is typical in franchising, as it allows the franchisor to maintain brand consistency and ensure that new locations meet specific criteria. However, the FDD also states that Del Taco's consent to a proposed location does not constitute any assurance, representation, or warranty of any kind. Therefore, while Del Taco must approve the location, the franchisee bears the ultimate responsibility for assessing the site's suitability and potential for success.