If a Del Taco franchisee violates the restrictions on what they can sell, what are the potential consequences?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
You must offer for sale and sell only those products and services that we have approved. You may not offer for sale any products or perform any services that we have not authorized previously in writing. See Items 8 and 9, above. We have the right to change the types of authorized products and services, without limitation.
We do not restrict whom you may serve. You generally must keep your Del Taco Restaurant open to the public 24 hours each day, every day of the year, except Christmas. Any changes to these opening hours must be expressly approved in writing by Del Taco.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 42)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees face several consequences if they violate restrictions on what they can sell. Del Taco mandates that franchisees must only offer and sell approved products and services and must obtain prior written authorization before offering any new, unapproved items. Del Taco retains the right to modify the list of authorized products and services.
Del Taco's Franchise Agreement stipulates that franchisees must maintain sufficient supplies and exclusively use and/or sell products, ingredients, materials, supplies, and paper goods that meet Del Taco's written standards. Deviating from these standards by using or offering non-conforming items without prior written consent is prohibited. Franchisees must sell or offer only products expressly approved in writing by Del Taco, using specified ingredients and preparation methods. Del Taco has the right to disapprove any product in writing at any time, requiring the franchisee to discontinue its sale.
To ensure compliance, Del Taco or its agents can remove product samples for testing at any reasonable time, without payment. If a supplier hasn't been pre-approved by Del Taco or if the sample fails to meet Del Taco's specifications, the franchisee may be required to cover the testing costs. Franchisees must also purchase and install specified fixtures, kitchen display systems, furnishings, equipment, decor, and signs. Installing unapproved items requires Del Taco's prior written consent. Additionally, franchisees must obtain written approval before installing any vending machines, games, or coin-operated devices.
Furthermore, if products sold at the restaurant are adulterated or deviate from Del Taco's standards, or if they fail to comply with applicable laws or regulations, the franchisee must immediately close the restaurant and cease operations. The franchisee is obligated to notify Del Taco in writing, destroy any non-compliant products, remedy any unsanitary conditions, and ensure compliance with all applicable laws and regulations before reopening, which requires Del Taco's inspection and approval. Del Taco also requires franchisees to purchase all products, ingredients, supplies, and materials from suppliers that Del Taco has approved in writing.