How long after the death of a Del Taco franchisee does the executor have to transfer the interest?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Within six (6) months after Franchisee's death (if a natural person) or the death of an owner, the executor, administrator, or other personal representative of the deceased will transfer the interest of the deceased in this Agreement or Franchisee to a third party approved by Del Taco.
If no personal representative is designated or appointed and no probate proceedings are instituted with respect to the estate of the deceased, the distributee of the interest of the deceased must be approved by Del Taco.
If the distributee is not approved by Del Taco, the distributee will transfer the interest of the deceased to a third party approved by Del Taco within six (6) months after the date of death of the deceased.
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 dies, their executor, administrator, or other personal representative has six months to transfer the deceased's interest in the Franchise Agreement to a third party approved by Del Taco. This applies if the franchisee is a natural person or if an owner of the franchise dies.
If no personal representative is designated or probate proceedings are not initiated, the distributee of the deceased's interest must be approved by Del Taco. Should Del Taco not approve the distributee, that distributee then has six months from the date of death to transfer the interest to a Del Taco-approved third party.
This clause ensures that Del Taco maintains control over who operates its franchises, even in the event of a franchisee's death. It also provides a defined timeframe for the transfer of ownership, which can help to ensure a smooth transition and avoid disruption to the business. Prospective franchisees should consider this provision carefully, particularly in the context of estate planning and business succession.