When purchasing a Del Taco location 'as is', what specific representations, warranties, or guarantees does Del Taco disclaim?
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 W
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, when a buyer agrees to purchase existing Del Taco locations and business assets "as is" and "where is" with all faults, Del Taco provides a limited warranty. Del Taco warrants and 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 and a schedule for repair.
This "as is" clause means the buyer accepts the locations in their current state, including any existing issues or defects, except for the assurance that the business assets are in working condition. This is a common practice in franchise resales, where the buyer assumes responsibility for the condition of the business. The buyer should conduct thorough due diligence, including inspections, to assess the condition of the locations and assets before completing the purchase.
Prospective franchisees should carefully review the list of items needing repair and the repair schedule provided by the seller to understand the potential costs and disruptions associated with bringing the locations up to Del Taco standards. It is important to negotiate the purchase agreement to address any concerns about the condition of the locations and assets, and to ensure that the seller fulfills their obligations to repair any items covered by the warranty.