When transferring a Del Taco franchise, under what circumstances will the franchisee (or transferee) be required to execute the form of franchise agreement then being offered to new franchisees?

According to Del Taco's 2025 Franchise Disclosure Document, when a franchisee proposes to transfer their franchise, Del Taco has the option to require the franchisee or the transferee to execute the form of franchise agreement then being offered to new franchisees. This new agreement would supersede the existing agreement in all respects.

This new franchise agreement may include terms that differ from the original agreement. These differences could include higher royalty fees and marketing fees, as well as a different or modified protected area. However, the term of the new franchise agreement will be equal to the then-unexpired term of the original agreement.

This clause allows Del Taco to update the franchise agreement to reflect current standards and fees when a franchise changes hands. For a prospective franchisee, this means that if they purchase an existing Del Taco franchise, they may be subject to different and potentially more costly terms than the original franchisee. It is important to carefully review the current franchise agreement and understand any potential changes that may be required upon transfer.