When purchasing a Del Taco location 'as is', does Del Taco have any obligation to make repairs, replacements, or improvements to the location?
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,' the buyer agrees to accept the location in its existing condition with all faults. Del Taco represents that the business assets are in working condition. If any of the business assets are in need of repair, the seller will provide a list of such items to the buyer along with a schedule for when the repairs will be completed.
Except as specifically outlined in the purchase agreement, Del Taco disclaims all warranties, representations, and guarantees, whether express or implied, regarding the value of the assets, the income to be derived from the locations, habitability, merchantability, profitability, the state of repair of the assets or locations, compliance with laws, the quality of construction or materials, and environmental compliance.
This 'as is' purchase agreement means the buyer assumes significant responsibility for the condition of the Del Taco location and its assets. It is crucial for prospective franchisees to conduct thorough due diligence, including inspections, to assess the true condition of the location and estimate potential repair and upgrade costs. The buyer should carefully review the list of items needing repair and the associated schedule to ensure it aligns with their expectations and operational needs.