During the term of the Del Taco Franchise Agreement, what is the permitted use of the real property?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- The use of the real property shall be restricted to a Del Taco Restaurant, during the term of the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the real property must be restricted to use as a Del Taco restaurant during the term of the Franchise Agreement. This restriction is typically included in the lease or sublease agreement.
This provision ensures that the property is used solely for the operation of a Del Taco restaurant, maintaining brand consistency and preventing potential conflicts with other businesses. It also protects Del Taco's interests by ensuring that the location remains dedicated to its brand for the duration of the franchise agreement.
Prospective franchisees should carefully review the lease agreement to understand the specific terms and conditions related to the use of the property. They should also confirm that the lease term is at least equal to the term of the Franchise Agreement to avoid any discrepancies or potential issues in the future.