Does Del Taco require a guarantee agreement from Jack in the Box Inc.?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Concurrent with the execution of this Agreement, if the Developer is not an individual, each holder of an ownership interest in the Developer shall execute the Personal Guarantee included with this Agreement and must be listed in Exhibit C.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
Based on the 2025 Del Taco Franchise Disclosure Document excerpts, there is no mention of requiring a guarantee agreement from Jack in the Box Inc. The document does outline requirements for a Personal Guarantee from each holder of an ownership interest in the Developer if the Developer is not an individual. This guarantee must be executed concurrently with the execution of the Development Agreement and those individuals must be listed in Exhibit C.
Additionally, the FDD excerpts discuss various aspects of the relationship between Del Taco and the franchisee, including site approval processes, construction obligations, and compliance with the Del Taco system. These stipulations ensure that franchisees meet Del Taco's standards for site development, restaurant appearance, and operational consistency. The franchisee is also responsible for indemnifying Del Taco against liabilities arising from the franchisee's business operations.
While the FDD excerpts detail the conditions under which individual owners must provide personal guarantees, it does not specify any requirements for guarantees from other corporate entities like Jack in the Box Inc. A prospective franchisee should directly ask Del Taco whether a guarantee from Jack in the Box Inc. or any other specific entity is ever required under certain circumstances.