Can a Del Taco franchisee transfer or assign the restaurant lease without Del Taco's consent?

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee cannot transfer or assign the restaurant lease without prior written consent from Del Taco. Specifically, the franchisee is prohibited from transferring or assigning the lease, or allowing a default or surrender of the lease that could result in the restaurant being owned, leased, or operated by someone who will not operate a Del Taco restaurant, without first obtaining Del Taco's approval. This requirement ensures that Del Taco maintains control over the locations and operations of its restaurants.

Del Taco's consent is required to maintain uniformity and brand consistency across all franchise locations. By retaining control over lease assignments, Del Taco can ensure that the restaurant continues to operate as a Del Taco and meets the brand's standards. This provision is designed to protect the integrity of the Del Taco brand and the interests of other franchisees within the system.

If a franchisee wishes to transfer the lease, they must seek written consent from Del Taco. Del Taco's approval is contingent on ensuring that the new operator will continue to run the restaurant as a Del Taco. This process allows Del Taco to evaluate the proposed transferee and ensure they meet the necessary qualifications and standards to maintain the quality and consistency of the Del Taco brand. This requirement is a standard practice in franchising, as franchisors typically want to maintain control over who operates their branded locations.