Who are the franchisee sellers offering the Del Taco franchise?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Seller is the owner of the Del Taco restaurant businesses identified in Schedule 1 attached hereto and incorporated herein by this reference (sometimes collectively referred to herein as the "Location(s)"). Buyers desire to become franchisee for each of the Locations under Franchise Agreements with Seller (or an affiliated entity) and tenant under Subleases with Seller for each of the Locations.
This Agreement sets forth the terms upon which: (i) Seller will sell and Buyer will purchase all of the assets of the businesses operated at the Locations, except as specifically excluded herein; and (ii) Seller (or an affiliated entity, as appropriate) and Buyers will enter into a Franchise Agreement and a Subease for each of the Locations, as described herein.
NOW THEREFORE, in consideration of the premises and the mutual covenants and conditions contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Buyer and Seller agree as follows:
1. INCORPORATION OF RECITALS
The above recitals are incorporated as terms of this Agreement as though fully set forth hereafter.
2. PURCHASE OF ASSETS
Upon the terms and subject to the conditions set forth in this Agreement, Seller and Buyer agree that at the "Closing" (as defined below):
- Α. Seller shall sell and convey and Buyer shall purchase:
- All furniture, fixtures, equipment, small wares, replacements and other personal (i) property (the "Business Assets") which are owned by Seller and present at the Locations on the "Closing Date" (as defined below).
- Wholesome food, paper goods and supplies (the "Additional Assets") which are (ii) present at the Locations on the Closing Date, all as determined by the inventory described in Section 6 of this Agreement.
- (iii) The cash in the restaurant change drawers and other petty cash at the Locations on the Closing Date (the "Stand Bank").
- (iv) The items described in subparagraphs (i), (ii) and (iii) above shall be collectively referred to hereafter as the "Assets."
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, a franchisee (referred to as 'Seller') who owns a Del Taco restaurant business can sell their assets and franchise rights to a buyer. The agreement stipulates that the Seller will sell all business assets, including furniture, fixtures, equipment, food, and cash present at the location, to the buyer. In turn, the buyer will become the franchisee under a new Franchise Agreement with the Seller (or an affiliated entity) and enter into subleases for the locations.
This arrangement allows existing Del Taco franchisees to transfer their business operations to new owners, subject to the terms outlined in the agreement. The buyer is responsible for post-closing employment matters and must comply with the standards of the Del Taco system, ensuring the restaurant's condition and adherence to brand standards are maintained. This transfer process involves a detailed purchase agreement that covers the assets, franchise rights, and sublease arrangements.
Prospective buyers should carefully review the schedules and terms within the agreement to understand the full scope of assets being transferred and the obligations they are assuming. This includes compliance with Del Taco's operational standards and any employment-related responsibilities. The agreement ensures a structured transition of ownership while maintaining the integrity and consistency of the Del Taco brand.