What representations and warranties are made by the buyer upon execution of the agreement regarding their receipt and review of the Del Taco FDD?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
By execution hereof, each of the parties constituting Buyer hereunder represents and warrants that (a) they have received Seller's current FDD and all Exhibits thereto at the earlier of the first personal meeting with Del Taco personnel regarding the transition which is the subject of this Agreement or fourteen (14) days or more prior to the execution hereof or payment of any fee in connection herewith; (b) they have had full opportunity to be advised of the terms and conditions of this Agreement and the Exhibits hereto by counsel of their own choosing prior to the execution hereof; and (c) they are executing this Agreement after having made such investigations of Seller and its operations as they desire.
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 executes the agreement, they make specific representations and warranties regarding their receipt and review of the Franchise Disclosure Document (FDD). Specifically, the buyer confirms that they received Del Taco's current FDD, including all exhibits, either at their first personal meeting with Del Taco personnel concerning the transition, or at least fourteen days before signing the agreement or paying any fees. This ensures the buyer has adequate time to review the document.
Furthermore, the buyer warrants that they had the opportunity to seek advice from their own legal counsel regarding the terms and conditions of the agreement and its exhibits before signing. This emphasizes the importance of independent legal review to fully understand the obligations and rights outlined in the franchise agreement.
Finally, the buyer confirms that they are signing the agreement after conducting their own investigations into Del Taco and its operations, to the extent they deemed necessary. This acknowledges that the buyer has taken the initiative to assess the franchise opportunity and is not solely relying on information provided by Del Taco. These representations and warranties are standard practice in franchising, intended to protect both the franchisor and franchisee by ensuring transparency and informed consent.