Which sections of the Del Taco Franchise Agreement are the undersigned individually bound by under the Guarantee, Indemnification, and Acknowledgment?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned each hereby jointly and severally acknowledge and expressly agree to be individually bound by all of the covenants contained in Sections 8, 9, and 10 of the Agreement, and acknowledge and agree that this Guarantee does not grant the undersigned any right to use the "Del Taco" Marks or System licensed to Franchisee under the Agreement.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the undersigned, as part of the Guarantee, Indemnification, and Acknowledgment, are individually bound by the covenants contained in Sections 8, 9, and 10 of the Del Taco Franchise Agreement. This means that individuals signing the guarantee are agreeing to be personally responsible for upholding the obligations outlined in those specific sections.
These sections likely cover critical aspects of the franchise agreement, such as operational standards, intellectual property protection, and confidentiality. By being individually bound, the guarantors are acknowledging their personal accountability for ensuring the franchisee's compliance with these key provisions. This protects Del Taco by providing recourse against individuals, not just the franchisee entity, if these covenants are breached.
Furthermore, the guarantee explicitly states that it does not grant the undersigned any right to use the "Del Taco" Marks or System licensed to the franchisee. This clarifies that the guarantee is purely an obligation and does not confer any of the rights or privileges associated with operating a Del Taco franchise. This distinction is important to prevent any misunderstanding about the guarantor's role and rights under the agreement.