If the franchisee is a business entity, where is the ownership information identified for Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.2 Owners.
If Franchisee is a business entity, each owner and the interest of each of them in Franchisee, is identified in Exhibit D hereto.
Franchisee represents and warrants that its owners are set forth on Exhibit D attached to this Agreement, and covenant that Franchisee will not permit the identity of such owners, or their respective interests in Franchisee, to change without complying with this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, if the franchisee is a business entity, the ownership information, including each owner and their respective interest in the franchisee, is identified in Exhibit D of the franchise agreement. Del Taco emphasizes that the rights and duties within the agreement are personal to the franchisee, and the franchise is granted based on the business skill, financial capacity, and personal character of the franchisee or its owners.
Del Taco requires franchisees to represent and warrant that the owners are accurately listed on Exhibit D. Furthermore, franchisees must not allow changes to the identity of the owners or their respective interests without adhering to the terms of the franchise agreement. This provision ensures that Del Taco maintains control over who is involved in the ownership of its franchises and that any changes are properly vetted and documented.
For limited liability companies, Del Taco has specific requirements. The franchisee's activities must be confined exclusively to operating the Del Taco restaurant, as stated in its governing documents. The franchisee must provide Del Taco with copies of its articles of organization, operating agreement, and any amendments. Additionally, the franchisee must furnish a current list of all members and managers, updating the list to reflect any ownership changes. Stop transfer instructions must be maintained on the records against the transfer of equity securities, and any issued securities must bear a legend referencing the transfer restrictions imposed by the franchise agreement.