Does Del Taco represent or warrant that future Del Taco franchisees will operate under the same agreement terms?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 29.1.1 Modification of Offers. Franchisee understands that present and future franchisees of Del Taco may operate under different forms of agreements and, consequently, the obligations and rights of the parties to those agreements may differ materially from the obligations and rights contained in this Agreement. Franchisee also acknowledges and agrees that Del Taco may modify the offer of Del Taco franchises to other franchisees in any manner and at any time, which offers and agreements have or may have terms, conditions, and obligations that may differ from the terms, conditions, and obligations in this Agreement.
- 29.1.2 Development Agreement Terms. Franchisee understands that a franchisee who is a party to a Del Taco Development Agreement may enjoy significantly more favorable terms and conditions under its Del Taco Franchise Agreement than the terms and conditions contained in this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco does not represent or warrant that future franchisees will operate under the same agreement terms. The FDD states that present and future Del Taco franchisees may operate under different forms of agreements. The obligations and rights within those agreements may differ materially from the obligations and rights in a franchisee's specific agreement.
Del Taco retains the right to modify franchise offers to other franchisees at any time, and these offers and agreements may contain terms, conditions, and obligations that differ from those in an existing franchisee's agreement. Furthermore, franchisees who are party to a Del Taco Development Agreement may have significantly more favorable terms and conditions than those in a standard Del Taco Franchise Agreement.
This means that a prospective Del Taco franchisee should not assume that the terms of their franchise agreement will remain consistent across the entire Del Taco system or in future agreements offered by Del Taco. The terms and conditions can change, potentially impacting the franchisee's rights, obligations, and financial arrangements. It is important to carefully review the franchise agreement and understand that future franchisees may have different terms.