If a Del Taco franchisee is a partnership, what documents must be provided to Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.27.2 If Franchisee is a partnership or limited liability partnership it 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 its partnership 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 general and limited partners 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 and in its partnership agreement against the transfer of partnership interests and equity securities, and shall only issue securities or partnership interests with documentation which bears a notice or 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 partnership or limited liability partnership, they must provide specific documents to Del Taco. The partnership must be newly organized and dedicated exclusively to operating the Del Taco restaurant. The franchisee must furnish Del Taco with its partnership agreement, including any amendments.
Additionally, the franchisee must prepare and provide Del Taco, upon request, with a current list of all general and limited partners. This list must be updated to reflect any changes in ownership as permitted by the franchise agreement.
Finally, the franchisee must maintain stop transfer instructions on its records and in its partnership agreement against the transfer of partnership interests and equity securities. Any issued securities or partnership interests must include documentation with a notice or legend, in a form satisfactory to Del Taco, referencing the transfer restrictions imposed by the Franchise Agreement.