How long does a Del Taco franchisee have to apply for approval to relocate or reconstruct the Restaurant after damage or destruction?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.2.4 If Franchisee at any time without the written consent of Del Taco ceases to operate or otherwise abandons the Restaurant for three (3) consecutive business days, or loses the right to possession of the Restaurant, or otherwise forfeits the right to do or transact business in the jurisdiction where the Restaurant is located; provided, however, that if, through no fault of Franchisee, the premises are damaged or destroyed by an event such that repairs or reconstruction cannot be completed within ninety (90) days thereafter, then Franchisee shall have thirty (30) days after such event in which to apply for Del Taco's approval to relocate and/or reconstruct the Restaurant, which approval shall not be unreasonably withheld;
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, a franchisee has a limited time frame to act if their restaurant is damaged or destroyed. Specifically, if the damage or destruction occurs through no fault of the franchisee and repairs or reconstruction cannot be completed within 90 days, the franchisee has 30 days after the event to apply for Del Taco's approval to relocate and/or reconstruct the restaurant. Del Taco's approval, however, cannot be unreasonably withheld.
This clause protects the franchisee from being penalized for circumstances beyond their control, such as natural disasters or accidental damage. However, it also places a strict deadline on the franchisee to take action and seek approval for relocation or reconstruction. Failing to apply within the 30-day window could potentially lead to a breach of the franchise agreement.
It is important to note that this provision applies only if the damage or destruction prevents repairs or reconstruction within 90 days. If the restaurant can be restored within that timeframe, the franchisee may be subject to different obligations under the franchise agreement. The franchisee should also confirm what documentation is required to prove the damage was not their fault and to demonstrate that repairs cannot be completed within the 90-day window.