What section of the Del Taco Development Agreement outlines post-termination obligations?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
f this Disclosure Document.**
| Obligation | Section in Franchise Agreement (FA) or Development Agreement (DA) | Item(s) in Disclosure Document |
|---|---|---|
| a. Location selection and | FA – 1.1 and 1. |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 30–31)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including where to find more information in the Franchise Agreement and Development Agreement. Specifically, post-termination obligations are detailed in Section 15 of the Development Agreement.
This means that if a Del Taco development agreement is terminated, either by the franchisee or Del Taco, Section 15 of the Development Agreement will govern the actions and responsibilities of both parties after the termination date. This section likely covers topics such as the franchisee's obligation to cease using Del Taco's trademarks, return confidential information, and comply with non-compete clauses.
Prospective Del Taco franchisees should carefully review Section 15 of the Development Agreement to understand their responsibilities and potential liabilities should the agreement be terminated. Understanding these obligations is crucial for making an informed decision about investing in a Del Taco franchise and for planning for various possible outcomes.