Regarding the Del Taco sublease agreement, which paragraph addresses the assignment of rights or delegation of performance under the sublease?

According to the 2025 Del Taco Franchise Disclosure Document, paragraph (f) within Item 23 discusses the assignment of the lease. Specifically, it states that the Developer (franchisee) has the unrestricted right to assign the lease to Del Taco or another franchisee of Del Taco. This clause ensures that franchisees have the flexibility to transfer their lease under certain conditions, which is a common practice in franchising to facilitate business transitions.

This provision is beneficial for a Del Taco franchisee because it provides an exit strategy if they decide to sell their franchise or can no longer operate the business. The unrestricted right to assign the lease simplifies the process of transferring the business to a new owner or back to Del Taco, as it avoids potential complications with the landlord. This can make the franchise more attractive to potential buyers and streamline the sale process.

However, it is important for prospective franchisees to understand the full context of this clause within the overall lease agreement. While the right to assign is unrestricted, other conditions in the lease might still apply, such as requirements for the assignee's financial qualifications or the landlord's approval (although the landlord cannot unreasonably withhold consent). Franchisees should also be aware of any fees or costs associated with the assignment process. Del Taco may also have specific requirements or procedures that must be followed when assigning the lease to ensure compliance with their standards and policies.

In summary, while paragraph (f) grants Del Taco franchisees the right to assign their lease, they should carefully review the entire lease agreement and consult with legal counsel to fully understand their rights and obligations. Understanding the conditions and procedures related to lease assignment is crucial for managing the franchise effectively and planning for future business transitions.