Can Del Taco modify or dissolve the franchisee advisory council at any time?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.10 Franchisee Advisory Council.
Del Taco has established or shall have the right to establish a franchisee advisory council or similar advisory group, for the purpose of fostering communication among and between franchisees and Del Taco, as well as to establish, modify or discuss various practices or policies applicable to Del Taco Restaurants.
Franchisee may be required to participate in such franchisee advisory council meetings and programs as Del Taco designates.
Franchisee may be required to pay such dues to the franchisee advisory council as Del Taco determines.
Del Taco may modify or dissolve the franchisee advisory council at any time.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco has the explicit right to modify or dissolve the franchisee advisory council at any time. This council is intended to foster communication between franchisees and Del Taco, and to discuss practices and policies applicable to Del Taco Restaurants. Franchisees may be required to participate in council meetings and programs as designated by Del Taco, and may also be required to pay dues as determined by Del Taco.
This provision grants Del Taco significant control over the advisory council, allowing them to alter or eliminate it as they see fit. For a prospective franchisee, this means that while a franchisee advisory council may exist, its influence and even its existence are not guaranteed. Franchisees should be aware that Del Taco can change the council's structure, purpose, or disband it entirely without franchisee consent.
In the franchise industry, franchisee advisory councils are often seen as a way for franchisees to have a voice in the franchisor's decision-making process. However, the extent of their influence can vary greatly. In this case, Del Taco retains ultimate authority over the council, which could limit the franchisees' ability to impact company policies and practices. Prospective franchisees should consider this when evaluating the level of support and collaboration they can expect from Del Taco.