What is the required action for a Del Taco Developer regarding presently issued ownership interests?

According to Del Taco's 2025 Franchise Disclosure Document, if the Developer is a legal entity, they are required to recall any presently issued and outstanding ownership interests. The purpose of this recall is to place a specific legend on these ownership interests. This legend must appear legibly and conspicuously on each document or certificate that evidences an ownership interest, stating: "The transfer of these securities is subject to the terms and conditions of an agreement with Del Taco LLC."

This requirement ensures that all current and future owners are aware that the transfer of their ownership interests is restricted and subject to Del Taco's agreement terms. This measure is in place to maintain control over who can become an owner in a Del Taco franchise and to ensure compliance with the franchise agreement. Additionally, the Developer must place a stop transfer order against the transfer of any ownership interests, except for transfers explicitly permitted within Section 16 of the agreement. This prevents unauthorized transfers of ownership that could violate the franchise agreement.

For a prospective Del Taco franchisee, this means that if they operate as a legal entity (like a corporation or LLC) and have already issued ownership interests, they must take immediate action to recall those interests and apply the specified legend. They also need to implement a stop transfer order to prevent unapproved transfers. This is a critical step to ensure compliance with Del Taco's requirements and to avoid potential breaches of the development agreement.