factual

Does Del Taco have any officers with ownership interest in required or approved vendors?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

None of our officers own any interest in any required or approved vendor, with the potential exception of a less than 1% ownership interest in one or more of publicly-traded vendors.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–30)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, none of Del Taco's officers own any interest in any required or approved vendor. However, there is a potential exception regarding a less than 1% ownership interest in one or more publicly-traded vendors.

This disclosure is important for prospective franchisees as it addresses potential conflicts of interest. If Del Taco's officers had significant ownership in approved vendors, it could raise concerns about whether those vendors were selected based on merit or personal gain. The potential exception regarding publicly-traded vendors is less concerning due to the small percentage and the nature of publicly-traded companies.

It is common practice for franchise agreements to disclose any potential conflicts of interest, including ownership interests in suppliers. This allows franchisees to make informed decisions about their investment and assess whether the required vendors are truly the best option for their business. Franchisees may want to inquire further about the publicly-traded vendors to understand the nature of the relationship and ensure transparency.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.