Is there a deadline associated with the payment of the Del Taco Transfer Fee?

According to the 2025 Del Taco Franchise Disclosure Document, the buyer may operate the restaurants under Del Taco permits on the Closing Date if allowed by the municipality. Within ninety (90) days of transfer or earlier as required by municipalities, the Buyer is responsible for obtaining/transferring all required licenses and permits into Buyer's name, as well as for the payment of any and all application, licensing, transfer or connection fees and costs associated with Buyer's acquisition of the Assets and subsequent operation of the Locations. This means that a prospective Del Taco franchisee purchasing an existing location must handle the transfer of licenses and permits, and pay any associated fees, within 90 days of the transfer date, or earlier if required by local regulations.

This requirement ensures that the new owner is compliant with all local laws and regulations necessary to operate the Del Taco restaurant. It also clarifies that any grandfathered permissions that Del Taco had do not automatically transfer to the new owner. The buyer is responsible for understanding and meeting all current code requirements.

Furthermore, the FDD states that rents, taxes, and other charges due under the subleases will be prorated through Escrow as of the Closing Date. Prior to the Closing, the Buyer must execute and deliver to Seller an Authorization for Direct Deposit Withdrawal, as required by the Franchise Agreements. This indicates that financial responsibilities are clearly divided and managed through an escrow process to ensure a smooth transition of ownership.