What is the procedure for Del Taco to deliver a termination notice without opportunity to cure?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
ivables and is not dismissed within thirty (30) days; or if suit to foreclose any lien or mortgage against the Restaurant premises or equipment is instituted against Franchisee and not dismissed within five (5) days; or if the real or personal property of the Restaurant shall be sold after levy thereupon by any sheriff, marshal, or constable.
- 13.2 Termination Upon Notice Without Opportunity to Cure. Franchisee shall be deemed to be in default and Del Taco may, at its option, terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure the default, effective immediately upon the delivery of written notice to Franchisee by Del Taco (in the manner set forth under Section 20 below), upon the occurrence of any of the following events:
- 13.2.1 If Franchisee fails to obtain approval of the site for the Restaurant pursuant to this Agreement or the Site Selection Addendum;
- 13.2.2 If Franchisee fails to construct, maintain, repair or renovate the Restaurant in accordance with this Agreement or Del Taco's plans and specifications or fails to equip the Restaurant in accordance with Del Taco's standards and specifications;
- 13.2.3 If Franchisee, its Operating Principal, or managers fail to complete the initial training program pursuant to Section 5.4 of this Agreement;
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco can terminate the franchise agreement without providing an opportunity to cure under specific circumstances. In such cases, Del Taco will deliver a written notice to the franchisee, and the termination is effective immediately upon delivery. The method of delivery will be as outlined in Section 20 of the franchise agreement.
These specific events include failing to obtain site approval for the restaurant. Other events include unauthorized use of Del Taco's proprietary marks, contesting Del Taco's ownership of these marks, or not using the marks as directed by Del Taco. If a franchisee fails to comply with the franchise agreement or any other agreement with Del Taco on more than two occasions during any 12-month period, Del Taco can also terminate the agreement without allowing an opportunity to cure. Additionally, if the franchisee's right to possess the restaurant terminates for any reason, Del Taco can immediately terminate the agreement.
This immediate termination clause is a significant point for prospective franchisees. It highlights the importance of strict adherence to Del Taco's brand standards, trademark usage, and other contractual obligations. Failure to meet these requirements can result in the immediate loss of the franchise, without any chance to rectify the situation. Franchisees should be aware of these potential pitfalls and ensure they fully understand and comply with all terms of the franchise agreement to avoid such termination.