Under what circumstances does the agreement term for a Del Taco Licensed Restaurant expire?

According to Del Taco's 2025 Franchise Disclosure Document, the term of the License Agreement begins on the Effective Date and expires under the following conditions:

First, the agreement expires on the expiration date of the Franchise Agreement if the franchisee does not renew their right to operate the Licensed Restaurant as per Section 2.2 of the Franchise Agreement. Second, the agreement expires on the expiration date of the renewal term if the franchisee does renew their right to operate the Licensed Restaurant according to Section 2.2 of the Franchise Agreement. Finally, the agreement can expire if terminated sooner pursuant to Article 12 of the License Agreement, or according to the terms of the Franchise Agreement.

In practical terms, this means the License Agreement, which governs the use of Del Taco's software and documentation, is directly tied to the underlying Franchise Agreement. If a franchisee chooses not to renew their franchise, or if the franchise is terminated for any reason, the License Agreement also terminates. This ensures that the franchisee can only use Del Taco's proprietary software and documentation while they are an active and compliant franchisee.

Prospective franchisees should carefully review Section 2.2 of the Franchise Agreement to understand their renewal options and obligations. They should also be aware of the conditions under Article 12 that could lead to early termination of the License Agreement, as this would impact their ability to operate the Del Taco restaurant.