Under what conditions must a Del Taco franchisee immediately close the restaurant and terminate operations?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall immediately close the Restaurant and terminate operations in the event that: (i) any products sold at the Restaurant evidence adulteration or deviation from the standards set for products by Del Taco; (ii) any products sold at the Restaurant fail to comply with applicable laws or regulations; or (iii) Franchisee fails to maintain the products, Restaurant premises, equipment, personnel, or operation of the Restaurant in accordance with any applicable law or regulations.
In the event of such closing, Franchisee shall immediately notify Del Taco in writing and Franchisee shall destroy immediately in accordance with procedures set forth in the Manual, or otherwise in writing by Del Taco, all products which it knows, or should know through the exercise of reasonable care, to be adulterated, tainted, contaminated, spoiled, unsafe, or otherwise unfit for human consumption and eliminate the source thereof, and remedy any unsanitary, unsafe, or other condition or other violation of the applicable law or regulation.
Franchisee shall not reopen the Restaurant until after Del Taco has inspected the Restaurant premises, and Del Taco has determined that Franchisee has corrected the condition and that all products sold at the Restaurant comply with Del Taco's standards.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee must immediately close their restaurant and terminate operations under specific conditions related to product quality, legal compliance, and adherence to standards. This is a critical requirement to protect the brand's reputation and ensure public safety.
Specifically, a Del Taco franchisee is obligated to shut down if any products sold show evidence of adulteration or deviation from Del Taco's established product standards. Similarly, closure and termination are required if any products fail to comply with applicable laws or regulations. Furthermore, the franchisee must cease operations if they fail to maintain the products, restaurant premises, equipment, personnel, or overall operation in accordance with any applicable laws or regulations.
In the event of such a closure, the franchisee must immediately notify Del Taco in writing. The franchisee is also responsible for destroying any adulterated, tainted, contaminated, spoiled, or unsafe products according to the procedures outlined in the manual or as otherwise instructed by Del Taco. The franchisee must also address and correct the underlying issues that led to the closure, such as unsanitary conditions or violations of applicable laws.
The Del Taco restaurant cannot be reopened until Del Taco has inspected the premises and determined that the franchisee has successfully corrected the issues and that all products meet Del Taco's standards. This rigorous process ensures that the restaurant meets the required standards before resuming operations, safeguarding both the brand and the customers.