What happens if no personal representative is designated after the death of a Del Taco franchisee?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Within six (6) months after Franchisee's death (if a natural person) or the death of an owner, the executor, administrator, or other personal representative of the deceased will transfer the interest of the deceased in this Agreement or Franchisee to a third party approved by Del Taco.
If no personal representative is designated or appointed and no probate proceedings are instituted with respect to the estate of the deceased, the distributee of the interest of the deceased must be approved by Del Taco.
If the distributee is not approved by Del Taco, the distributee will transfer the interest of the deceased to a third party approved by Del Taco within six (6) months after the date of death of the deceased.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, if a franchisee dies and no personal representative is designated or probate proceedings are initiated, the distributee of the deceased's interest must be approved by Del Taco. This means that whoever inherits the franchisee's interest in the Del Taco franchise needs to be vetted and accepted by the franchisor.
If the distributee is not approved by Del Taco, they are required to transfer the deceased's interest to a third party that Del Taco does approve. This transfer must occur within six months of the franchisee's death. This clause ensures that Del Taco maintains control over who operates its franchises, even in the event of the franchisee's death and subsequent inheritance of the franchise.
This requirement protects Del Taco's brand standards and operational consistency. It also places a responsibility on the heirs of the franchisee to either gain approval from Del Taco or find an alternative approved buyer for the franchise within a specific timeframe. Prospective franchisees should consider these stipulations and discuss with Del Taco how they can ensure a smooth transition plan is in place for their business in the event of death or incapacitation.