If a third-party land owner requires other insurance, must a Del Taco franchisee obtain it?

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee must obtain other insurance if required by a third-party land owner. In addition to insurance that may be required by any state, local, federal, or municipal law, a Del Taco franchisee must also carry any other insurance required by a third-party land owner, if applicable.

The insurance policies that the franchisee obtains must be primary, with Del Taco's insurance being non-contributory. The insurance company must have a rating of "A-VIII" or better in the A.M. Best Insurance Rating Guide, or be approved by Del Taco. Del Taco and its affiliates, and any other parties Del Taco requests, must be named as additional insureds. The policy must also provide thirty days' advance written notice to Del Taco before any cancellation, material change, or non-renewal. Finally, the policy must contain a waiver of subrogation rights of the insurer(s) against Del Taco.

These requirements ensure that Del Taco is protected from potential liabilities and that the franchisee maintains adequate coverage. Franchisees should factor in the cost of these insurance requirements when evaluating the overall investment and operating costs of a Del Taco franchise.