What must a Del Taco franchisee demonstrate regarding the restaurant premises to be eligible for renewal?

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee seeking to renew their franchise agreement must demonstrate their right to remain in possession of the restaurant premises for the duration of the renewal term. This can be achieved by presenting evidence of their right to remain in possession of the premises or by securing Del Taco's approval of a new location for the restaurant, adhering to the then-current criteria for new locations, also for the duration of the renewal term.

This requirement ensures that the franchisee has a secure location for the entire renewal period, which is crucial for the continued operation of the Del Taco restaurant. Without a secure location, the franchisee would be unable to continue operating, which would negatively impact both the franchisee and the Del Taco brand. This also protects Del Taco by ensuring the restaurant will continue to operate according to brand standards at an approved location.

For a prospective franchisee, this means that securing a long-term lease or property ownership is essential for the long-term viability of their Del Taco franchise. It also highlights the importance of maintaining a good relationship with the landlord and adhering to the terms of the lease. If a franchisee anticipates needing to relocate, they must obtain Del Taco's approval for the new location, which will be subject to the then-current criteria for new Del Taco restaurants. This condition is typical in franchise agreements to protect the brand and ensure consistent operations.