Does Del Taco have an option to purchase a Del Taco franchise upon termination or expiration of the Franchise Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the Agreement | Summary |
|---|---|---|
| o. Our option to purchase your business | 12.6 | We have an option to purchase your business upon the termination or expiration of your Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco does have the option to purchase a franchisee's business upon the termination or expiration of the Franchise Agreement.
Specifically, Del Taco retains this option as outlined in Section 12.6 of the agreement. This means that when the franchise agreement ends, Del Taco has the right to buy the franchise from the franchisee.
This clause is important for prospective franchisees to understand because it affects their ability to sell the business to another party at the end of the franchise term. While a franchisee might hope to profit from selling their Del Taco location, this provision gives Del Taco the first opportunity to purchase it, potentially impacting the sale price and terms. Franchisees should carefully consider this when evaluating the potential long-term value of a Del Taco franchise.