If any of the business assets at a Del Taco location are in need of repair when purchased 'as is', what is Del Taco's obligation?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
BUYER AGREES TO PURCHASE THE LOCATIONS AND BUSINESS ASSETS "AS IS" AND "WHERE IS" WITH ALL FAULTS, AS DESCRIBED BELOW, PROVIDED THAT: (A) DEL TACO WARRANTS AND REPREESENTS THAT THE BUSINESS ASSETS ARE IN WORKING CONDITION. IF ANY OF THE BUSINESS ASSETS ARE IN NEED OF REPAIR, SELLER WILL DELIVER A LIST OF SUCH ITEMS TO THE BUYER AND A SCHEDULE BY WHICH SUCH ITEMS WILL BE REPAIRED.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a buyer agrees to purchase locations and business assets "as is" and "where is" with all faults. However, Del Taco warrants and represents that the business assets are in working condition. If any of the business assets are in need of repair, Del Taco will deliver a list of such items to the buyer and a schedule by which such items will be repaired.
This means that while the buyer accepts the assets in their existing condition at closing, Del Taco has a responsibility to provide a list of any assets needing repair and a timeline for completing those repairs. This is an important protection for the buyer, as it ensures that essential business assets are in working order or will be repaired shortly after the purchase.
Prospective franchisees should carefully review the list of assets and the repair schedule provided by Del Taco to fully understand the condition of the business they are purchasing and the extent of any required repairs. It is also advisable to conduct their own due diligence to verify the accuracy of the list and the feasibility of the repair schedule.