If Del Taco elects to purchase the franchisee's interest, how long does the closing take?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.6.1 If Franchisee or any owner desires to accept any bona fide offer from a third party to purchase Franchisee, all or substantially all of the assets of the Restaurant, or any direct or indirect interest in Franchisee, Franchise or such owner shall promptly notify Del Taco of such offer and shall provide such information and documentation relating to the offer as Del Taco may require. Del Taco shall have the right and option, exercisable within thirty (30) days after receipt of all such information, to send written notice to the seller that Del Taco intends to purchase the seller's interest on the same terms and conditions offered by the third party. If Del Taco elects to purchase the seller's interest, the closing on such purchase shall occur within sixty (60) days from the date of notice to the seller of the election to purchase by Del Taco.
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 receives a legitimate offer from a third party to purchase the franchise, its assets, or any interest in the franchise, the franchisee must notify Del Taco. Del Taco then has 30 days to decide if they want to purchase the franchisee's interest under the same terms offered by the third party.
If Del Taco decides to purchase the franchisee's interest, the closing on the purchase must occur within 60 days from the date Del Taco notifies the seller (franchisee) of its election to purchase. This means the entire process, from initial notification to closing, could take up to 90 days (30 days for Del Taco to decide + 60 days for closing).
This right of first refusal allows Del Taco to maintain control over who becomes a franchisee and prevents unwanted third parties from entering the system. For a prospective franchisee, this means that selling their franchise may involve Del Taco stepping in to purchase the business instead of a third-party buyer. Franchisees should be aware of this clause as it could impact their exit strategy and the ultimate sale of their Del Taco franchise.