What section of the Franchise Agreement outlines the requirements for keeping the Del Taco locations in good condition?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- Buyer agrees and acknowledges that Buyer shall be obligated to comply at all times with the provisions of Section 5.1. of the Franchise Agreement for each of the Locations.
Such section requires, among other things, (a) that the Locations be kept in good condition and in conformity with the "System" (as defined therein), and (b) that Buyer make any improvements and alterations as may be determined by Del Taco to be necessary.
- Buyer acknowledges that Del Taco shall have the right to terminate the Franchise Agreement and Sublease for any of the Locations as of the expiration of the current term of the Master Lease(s), or as of the expiration of any extension of such term, upon written notice to Buyer; provided, however, that following receipt of any such notice from Del Taco, if Buyer desires to remain at the subject Location(s), Buyer will be permitted to contact the master landlord(s) and negotiate terms directly with such master landlord(s), with the condition that Del Taco will be released from any and all lease obligations and/or guarantees with respect to the subject Location(s).
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, Section 5.1 of the Franchise Agreement outlines the requirements for maintaining the locations. Specifically, it mandates that the locations be kept in good condition and in conformity with the Del Taco system standards.
This section also stipulates that the buyer, or franchisee, must make any improvements and alterations that Del Taco deems necessary. This means that franchisees must be prepared to invest in updates or changes to their location to meet Del Taco's evolving brand standards and operational requirements.
Furthermore, Del Taco retains the right to terminate the Franchise Agreement and Sublease if these conditions are not met, or as of the expiration of the current term of the Master Lease(s), or as of the expiration of any extension of such term. However, the franchisee has the option to negotiate directly with the master landlord(s) to remain at the location, provided Del Taco is released from all lease obligations and/or guarantees.