conditional

Regarding the Del Taco Sublease, what condition is placed on the Sublandlord's execution of the Sublease?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

NOW, THEREFORE, for and in consideration of Sublandlord's execution of the Sublease and as a material inducement to Sublandlord to enter into the Sublease, Guarantor hereby covenants with and represents and warrants to Sublandlord as follows:

    1. Guarantor hereby jointly, severally, irrevocably and unconditionally guarantees, for and during the term of the Sublease as extended or renewed, the prompt payment by Subtenant of all obligations arising from or in connection with the Sublease (the "Guaranteed Obligations"). If, at any time, Subtenant shall default in the payment of any sums payable by Subtenant under the Sublease or in the performance of any of the terms, conditions or covenants of the Sublease to be kept, performed or observed by Subtenant, Guarantor will immediately pay such sums.
    1. This Guaranty shall not be released, modified or affected by failure or delay on the part of Sublandlord to enforce any of the rights or remedies of Sublandlord under the Sublease, whether pursuant to the terms thereof or at law or in equity. No provisions of this Guaranty or rights of Sublandlord hereunder can be waived in whole or in part nor can Guarantor be released from Guarantor's obligations hereunder except by a writing duly executed by an authorized officer of Sublandlord.
    1. Sublandlord may proceed directly and simultaneously against Subtenant and or Guarantor following any breach or default by Subtenant under the Sublease and may serve notice or demand upon either or both Subtenant or Guarantor.

Source: Item 23 — RECEIPTS (FDD pages 59–325)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, the Sublandlord's execution of the Sublease is contingent upon the Guarantor providing a guarantee. Specifically, the Guarantor covenants with and represents and warrants to Sublandlord as a material inducement to Sublandlord to enter into the Sublease.

This guarantee ensures that the Subtenant's obligations under the Sublease are met. The Guarantor jointly, severally, irrevocably, and unconditionally guarantees the prompt payment of all obligations arising from or connected with the Sublease during its term, including any extensions or renewals. If the Subtenant defaults on any payments or fails to perform any terms, conditions, or covenants of the Sublease, the Guarantor is obligated to immediately pay the sums due.

This guarantee remains in effect regardless of any failure or delay by the Sublandlord in enforcing its rights or remedies under the Sublease. The Guarantor's obligations can only be waived through a written agreement executed by an authorized officer of the Sublandlord. The Sublandlord has the right to proceed directly and simultaneously against both the Subtenant and the Guarantor following any breach or default by the Subtenant, and may serve notice or demand upon either or both parties.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.