Under what conditions, besides the end of the term, will the Del Taco agreement terminate immediately?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's breach of this Contract resulting in its termination for cause pursuant to Section 7.b) hereof shall constitute a breach of the Franchise Agreement, for which Company may, among other things, immediately terminate the Franchise Agreement without providing Franchisee an opportunity to cure.
If any provision in this Agreement is held invalid or otherwise unenforceable by any court or other government authority or in any other proceeding, such findings shall not invalidate the remainder of the agreement unless in Del Taco's reasonable opinion the effect of such determination has the effect of frustrating the purpose of this Agreement, whereupon Del Taco shall have the right by notice in writing to Franchisee to immediately terminate this Agreement.
Termination. If Licensee exceeds the authorized scope of the License granted under this Agreement or violates any obligation under Articles 3 or 8 of this Agreement with respect to any License, Del Taco may, in its sole discretion, immediately terminate this Agreement or the License granted with respect to any or all of the Licensed Restaurants without prior notice. Del Taco may, in its sole discretion, immediately terminate this Agreement or the License granted with respect to any Licensed Restaurant(s): (i) without prior notice, if Licensee fails to pay the License Fee or Support Services Fee pertaining to that Licensed Restaurant within 30 days after it is due; (ii) without prior notice, if the franchise or license agreement for that Licensed Restaurant is terminated; (iii) without prior notice, if the franchise, franchise agreement or Licensed Restaurant is transferred; or (iv) if Licensee fails to cure any other breach of this Agreement within 15 days of written notice of the breach.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, Del Taco has the right to terminate the agreement immediately under certain conditions. Specifically, if a franchisee breaches the contract, resulting in its termination for cause, Del Taco may immediately terminate the Franchise Agreement without providing an opportunity to cure the breach.
Additionally, if any provision in the agreement is held invalid by a court or government authority, Del Taco can terminate the agreement immediately if, in their reasonable opinion, the determination frustrates the purpose of the agreement.
Furthermore, if a Licensee exceeds the authorized scope of the License granted under this Agreement or violates any obligation under Articles 3 or 8 of this Agreement with respect to any License, Del Taco may, in its sole discretion, immediately terminate this Agreement or the License granted with respect to any or all of the Licensed Restaurants without prior notice. Del Taco may, in its sole discretion, immediately terminate this Agreement or the License granted with respect to any Licensed Restaurant(s): (i) without prior notice, if Licensee fails to pay the License Fee or Support Services Fee pertaining to that Licensed Restaurant within 30 days after it is due; (ii) without prior notice, if the franchise or license agreement for that Licensed Restaurant is terminated; (iii) without prior notice, if the franchise, franchise agreement or Licensed Restaurant is transferred; or (iv) if Licensee fails to cure any other breach of this Agreement within 15 days of written notice of the breach.