Under what condition can Del Taco accelerate the termination date of the contract?
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, Del Taco can accelerate the termination date of a contract under specific circumstances. Initially, Del Taco may terminate the contract by providing a 60-day written notice to the franchisee. However, if Del Taco becomes aware of facts indicating the franchisee breached the terms and conditions of the agreement before the 60-day notice expires, Del Taco can accelerate the termination date.
This acceleration allows Del Taco to immediately terminate the contract instead of waiting for the original 60-day notice period to end. This provision protects Del Taco's interests by allowing them to promptly address and rectify any breaches of contract by the franchisee.
For a prospective Del Taco franchisee, this means that any breach of the franchise agreement's terms and conditions could lead to immediate termination, even if a termination notice has already been issued. Therefore, it is crucial for franchisees to adhere strictly to all contractual obligations to avoid the risk of accelerated termination.