Does Del Taco's lease agreements contain any material residual value guarantees?

According to the 2025 Del Taco Franchise Disclosure Document, Del Taco's lease agreements do not contain any material residual value guarantees. This means that Del Taco does not guarantee a specific value for the leased property at the end of the lease term.

For a prospective franchisee, this is a positive aspect. It means that Del Taco is not obligated to cover any potential shortfall if the leased property's actual value at the end of the lease term is less than an estimated residual value. This reduces potential financial risks for both Del Taco and its franchisees related to lease agreements.

Franchise agreements often involve long-term leases for restaurant locations and equipment. The absence of residual value guarantees in Del Taco's leases provides more predictable lease-related financial obligations. This can simplify financial planning and reduce uncertainty for franchisees.