Can a Del Taco franchisee terminate the contract for convenience, and if so, how much notice is required?

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee can terminate the contract for convenience. The franchisee must provide one hundred fifty (150) days' written notice to Ceridian, not directly to Del Taco, as this termination clause pertains to a specific contract (likely for a platform or service) rather than the overarching Franchise Agreement with Del Taco itself. This distinction is important because the termination terms for the Franchise Agreement may differ significantly.

It is important to note that this termination clause is specific to the contract mentioned in the excerpt and does not necessarily reflect the terms for terminating the franchise agreement itself with Del Taco. The document also states that if the company, presumably Ceridian, issues a sixty (60) day written notice of termination and becomes aware of a breach by the franchisee, the company may accelerate the effective date of the termination and exercise its right to terminate the contract immediately.

Prospective Del Taco franchisees should carefully review the specific contract referenced in this section of the FDD to fully understand their rights and obligations regarding termination. They should also inquire with Del Taco about the conditions under which they can terminate the Franchise Agreement itself, as those terms are not detailed in this particular excerpt. Understanding the full scope of termination rights and responsibilities is crucial for making an informed investment decision.