Are Del Taco franchisees required to comply with anti-terrorism laws?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
29.1.5 Compliance with Anti-Terrorism Laws and Other Laws. Franchisee and its owners represent and warrant to Del Taco that: (a) neither Franchisee nor any of its owners have made any untrue statement of any material fact nor omitted to state any material fact in Franchisee and their franchise application and other documents and information submitted to Del Taco, or in obtaining the rights granted herein; (b) neither Franchisee nor any of its owners have any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business, except as otherwise completely and accurately disclosed in Franchisee's franchise application materials; (c) Franchisee and its owners have a legal right to own and operate the Restaurant, and the owner or officer that executes this Franchise Agreement on Franchisee's behalf has all legal right an authority to execute on Franchisee's behalf and to legally and contractually bind Franchisee; and (d) neither Franchisee nor its owners (i) have been designated as suspected terrorists under U.S. Executive Order 13244; (ii) is identified, either by name or an alias, pseudonym or nickname, on the lists of "Specially Designated Nationals" or "Blocked Persons" maintained by the U.S. Treasury Department's Office of Foreign Assets Control (texts currently available at https://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx /); (iii) have not violated and will not violate any law (in effect now or which may become effective in the future) prohibiting corrupt business practices, money laundering or the aid or support of persons who conspire to commit acts of terror against any person or government, including acts prohibited by the U.S. Patriot Act (text currently available at http://www.epic.org/privacy/terrorism/hr3162.html), U.S. Executive Order 13244 (text currently available at http://www.treas.gov/offices/enforcement/ofac/sanctions/terrorism.html), the Foreign Corrupt Practices Act, or any similar law.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees must comply with anti-terrorism laws. As part of the franchise agreement, the franchisee and their owners must confirm that they have not made any false statements in their application to Del Taco. They also must affirm that they do not have undisclosed interests in any competitive businesses.
Furthermore, the franchisee and their owners must confirm they have the legal right to operate the restaurant. They must also state that they have not been designated as suspected terrorists under U.S. Executive Order 13244 or identified on the Specially Designated Nationals or Blocked Persons lists maintained by the U.S. Treasury Department's Office of Foreign Assets Control. The franchisee also warrants that they have not violated and will not violate any laws prohibiting corrupt business practices, money laundering, or support of those who commit acts of terror, including those prohibited by the U.S. Patriot Act, U.S. Executive Order 13244, and the Foreign Corrupt Practices Act.
This requirement ensures that Del Taco franchisees adhere to all applicable anti-terrorism laws and regulations, which is a standard practice in franchising to protect the brand and maintain legal compliance. Franchisees should carefully review these requirements and ensure they meet all conditions to avoid potential legal issues and maintain a good standing with the Del Taco franchise system.