When purchasing a Del Taco location 'as is', what is the buyer acknowledging and agreeing to by initialing the agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
BUYER AGREES TO PURCHASE THE LOCATIONS AND BUSINESS ASSETS "AS IS" AND "WHERE IS" WITH ALL FAULTS, AS DESCRIBED BELOW, PROVIDED THAT: (A) DEL TACO WARRANTS AND REPREESENTS THAT THE BUSINESS ASSETS ARE IN WORKING CONDITION. IF ANY OF THE BUSINESS ASSETS ARE IN NEED OF REPAIR, SELLER WILL DELIVER A LIST OF SUCH ITEMS TO THE BUYER AND A SCHEDULE BY WHICH SUCH ITEMS WILL BE REPAIRED.
AT CLOSING, BUYER SHALL ACCEPT THE ASSETS AND THE LOCATIONS IN THEIR EXISTING "AS-IS" AND "WHERE IS" WITH ALL FAULTS CONDITION, WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND BY SELLER, EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT, BUYER ACKNOWLEDGES AND AGREES THAT, EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT, SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTEES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO (I) VALUE OF THE ASSETS; (II) THE INCOME TO BE DERIVED FROM THE LOCATIONS; (III) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE ASSETS OR THE LOCATIONS; (IV) THE MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE ASSETS OR THE LOCATIONS; (V) THE NATURE, QUALITY OR CONDITION OF THE ASSETS OR THE LOCATIONS; (VI) THE COMPLIANCE OF OR BY THE LOCATIONS WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY; (VII) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE LOCATIONS; (VIII) COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATION, ORDERS OR REQUIREMENTS; (IX) THE PRESENCE OR ABSENCE OF HAZARDOUS MATERIALS AT.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, when a buyer purchases a Del Taco location "as is", they are acknowledging and agreeing to accept the location and its business assets in their existing condition, with all faults. Del Taco does warrant that the business assets are in working condition and will provide a list of items needing repair, along with a schedule for those repairs.
Specifically, the buyer acknowledges that, except as explicitly stated in the agreement, Del Taco makes no representations or warranties regarding the value of the assets, the income to be derived from the locations, habitability, merchantability, marketability, profitability, or fitness for a particular purpose of the assets or the locations. This also includes the manner, quality, state of repair, or lack of repair of the assets or the locations, the nature, quality, or condition of the assets or the locations, and the compliance of the locations with any laws, rules, ordinances, or regulations.
Furthermore, the buyer acknowledges that Del Taco makes no warranties regarding the manner or quality of construction or materials incorporated into the locations, compliance with environmental protection, pollution, or land use laws, rules, regulations, orders, or requirements, and the presence or absence of hazardous materials. This comprehensive disclaimer protects Del Taco from liability related to the condition and compliance of the locations and assets being sold, placing the responsibility on the buyer to conduct thorough due diligence.
This "as is" purchase agreement is common in franchise resales, but it places a significant burden on the buyer to assess the true condition and potential liabilities of the business they are acquiring. A prospective Del Taco franchisee should conduct thorough inspections and seek professional advice to fully understand the risks and obligations they are assuming.