Does Del Taco require franchisee consent to assign the Franchise Agreement?

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from assigning the Franchise Agreement to a third party without obtaining prior written consent from Del Taco. However, there is an exception to this rule: a merger or consolidation of the franchisee into another entity, or the sale of substantially all of the franchisee's assets to a third party, is not considered an assignment requiring Del Taco's consent.

This requirement means that if a franchisee wants to sell their Del Taco business to someone else, they must first get Del Taco's approval. Del Taco retains control over who becomes a franchisee, ensuring they meet the brand's standards and qualifications. This protects the consistency and reputation of the Del Taco brand.

Del Taco, on the other hand, may freely assign the Franchise Agreement or any of its rights or obligations without needing the franchisee's consent. This gives Del Taco flexibility in its business operations and strategic decisions. The agreement is binding on both parties and their permitted successors and assigns, ensuring that the terms of the agreement continue to be enforced even if ownership changes.