Can Del Taco terminate the contract for convenience, and if so, how much notice is required?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- c) Termination for Convenience. The Company may terminate this Contract by giving sixty (60) days' written notice to Franchisee. Franchisee may terminate the Contract by giving one hundred fifty (150) days' written notice to C. In the event the Company issues a sixty (60) day written notice of termination and prior to the expiration of the 60th day the Company becomes aware of facts indicating Franchisee breached these terms and conditions, the Company may accelerate the effective date of the termination and exercise its right to terminate this Contract immediately.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the company has the right to terminate the contract for convenience. Specifically, Del Taco may terminate the contract by providing the franchisee with sixty days' written notice.
Conversely, the franchisee also has the option to terminate the contract, but they are required to give Del Taco a longer notice period of one hundred fifty days in writing. This difference in notice periods may reflect Del Taco's need to ensure business continuity and find a replacement operator, while the franchisee's decision to terminate might be more personal or financially driven.
It's important to note that if Del Taco issues a sixty-day termination notice and subsequently discovers that the franchisee has breached the terms and conditions of the agreement, Del Taco can accelerate the termination date and terminate the contract immediately. This clause protects Del Taco from potential damages or continued breaches during the notice period.