Under what conditions can a Del Taco licensee assign the franchise agreement to a third party?

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee is generally restricted from assigning their Franchise Agreement or any rights or obligations under it to another party without Del Taco's prior written consent. This means that if a franchisee wants to sell their franchise to someone else, they must first obtain written approval from Del Taco. This requirement allows Del Taco to maintain control over who operates its franchises and ensures that new operators meet their standards.

However, the FDD specifies an exception to this rule. The merger or consolidation of the franchisee into a third party, or the sale of all or substantially all of the franchisee's assets to a third party, is not considered an assignment. In these scenarios, the franchisee may not need to seek Del Taco's consent for the transfer, as the business entity itself is undergoing a significant change rather than simply transferring the franchise agreement.

Del Taco, on the other hand, retains the right to freely assign the Franchise Agreement or any associated rights or obligations. This provides Del Taco with flexibility in managing its franchise network and business operations. The agreement is binding upon the parties involved and their permitted successors and assigns, ensuring that the terms and conditions remain in effect even if ownership or control changes, subject to the assignment restrictions outlined.