If allowed by the municipality, when can a buyer operate Del Taco restaurants under Del Taco permits?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- Buyer may operate the restaurants under Del Taco permits on the Closing Date if allowed by the municipality. Within ninety (90) days of transfer or earlier as required by municipalities, Buyer shall be responsible for obtaining/transferring all required licenses and permits into Buyer's name, as well as for the payment of any and all application, licensing, transfer or connection fees and costs associated with Buyer's acquisition of the Assets and subsequent operation of the Locations.
- Buyer acknowledges and agrees Buyer must understand city, county, state, and federal laws, rules, regulations and code requirements (collectively, "Laws") applicable to the Locations, and that certain Laws may have been grandfathered for Del Taco, but will not apply to the new owner upon transfer of the Locations. Buyer will be responsible for determining if additional work and/or equipment may be required in order for the Locations to comply with all applicable Laws, and for the costs of any required modifications to the equipment, kitchen design, and/or facility at any of the Locations. Buyer acknowledges and agrees further that city code inspections (health inspectors and other city inspection authorities) will occur either before or after the Closing Date (depending on the municipality). Inspections are required for Buyer to receive a certificate of occupancy and other applicable permits (including but not limited to health permits) to operate the Locations.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a buyer may be able to operate the restaurants under Del Taco's permits on the closing date, but this is contingent on the municipality's regulations. The buyer is then responsible for transferring all required licenses and permits into their name within 90 days of the transfer, or earlier if the municipality requires it. This includes covering all associated application, licensing, transfer, or connection fees and costs.
It is important for the buyer to understand all city, county, state, and federal laws, rules, regulations, and code requirements applicable to the locations. Some laws may have been grandfathered for Del Taco but will not apply to the new owner upon transfer. The buyer is responsible for determining if additional work or equipment is needed to comply with all applicable laws and for covering the costs of any required modifications to the equipment, kitchen design, or facility at any of the locations.
City code inspections, including those by health inspectors and other city inspection authorities, will occur either before or after the closing date, depending on the municipality. These inspections are necessary for the buyer to receive a certificate of occupancy and other applicable permits, such as health permits, to operate the locations. Therefore, while initial operation under Del Taco's permits may be possible, the franchisee must quickly secure their own permits to ensure continued operation and compliance.