If a Del Taco franchisee is a limited liability company, what documents must be provided to Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.27.3 If a Franchisee is a limited liability company, Franchisee shall: (i) be newly organized, and confine its activities, and its governing documents shall at all times provide that its activities are confined, exclusively to operating the Restaurant; (ii) furnish Del Taco with a copy of its articles of organization and operating agreement, as well as such other documents as Del Taco may reasonably request, and any amendments thereto; (iii) prepare and furnish to Del Taco, upon request, a current list of all members and managers in Franchisee, which list shall be amended to reflect changes in ownership, as permitted under this Agreement; and (iv) maintain stop transfer instructions on its records against the transfer of equity securities and shall only issue securities upon the face of which bear a legend, in a form satisfactory to Del Taco, which references the transfer restrictions imposed by 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 a franchisee is a limited liability company, they must provide specific documents to Del Taco. These include a copy of the company's articles of organization and operating agreement, along with any amendments to these documents. Del Taco may also reasonably request other documents.
Additionally, the franchisee must prepare and furnish Del Taco with a current list of all members and managers within the limited liability company. This list must be updated to reflect any changes in ownership, as permitted under the franchise agreement. This ensures Del Taco has current information on the individuals involved in the franchise.
Furthermore, the franchisee is required to maintain stop transfer instructions on its records against the transfer of equity securities. Any securities issued must bear a legend, in a form satisfactory to Del Taco, that references the transfer restrictions imposed by the franchise agreement. This provision aims to control and monitor the transfer of ownership within the franchise, ensuring compliance with Del Taco's standards and protecting the brand's integrity.