What is the term length of the Del Taco agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement and all Development Rights shall expire immediately upon the required opening date for the last Restaurant set forth on the Development Schedule or the actual opening date for the last Restaurant, whichever first occurs, unless sooner terminated in accordance with the terms and conditions of this Agreement.
The lease or sublease agreement shall include the following provisions:
- (j) The lease shall have a term at least equal to the term of the Franchise Agreement; and
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, the Development Agreement's term and all Development Rights expire immediately upon the required opening date for the last Restaurant set forth on the Development Schedule or the actual opening date for the last Restaurant, whichever occurs first. The agreement can also be terminated sooner based on its terms and conditions. This means the agreement's length is tied directly to the franchisee's ability to meet the development schedule outlined in the agreement.
This conditionality is important for prospective Del Taco developers to understand. The term isn't a fixed number of years but depends on adherence to the development schedule. Failure to open restaurants as planned could lead to early termination of the agreement, potentially resulting in a loss of development rights and any associated fees.
Prospective developers should carefully review the Development Schedule and assess their ability to meet the required opening dates. They should also understand the conditions under which Del Taco can terminate the agreement early, as this could significantly impact their investment and development plans. It is also important to note that the lease agreement must have a term at least equal to the term of the Franchise Agreement.