What is the minimum coverage period for Business Interruption/Business Income insurance required for a Del Taco franchise?

According to Del Taco's 2025 Franchise Disclosure Document, franchisees must maintain Business Interruption/Business Income insurance for at least one year of actual loss sustained. This insurance coverage is designed to re-establish normal business operations following an interruption. The policy must also include Extra Expense insurance.

In practical terms, this means a Del Taco franchisee needs to secure an insurance policy that will cover business income losses for a minimum of 12 months if the restaurant experiences an event that forces it to temporarily close. This could include events like a fire, natural disaster, or other unforeseen circumstances that halt operations. The insurance should provide funds to cover ongoing expenses and help the franchisee get the business back up and running.

Additionally, the insurance policy must include coverage for loss of rents insurance covering a minimum of twelve (12) months' fixed minimum rent. This protects the franchisee from rental obligations during a period of business interruption. Del Taco also requires that franchisees provide renewal certificates of insurance to Del Taco no later than thirty (30) days prior to the expiration date of all policies.