Under what conditions does Del Taco have the option to purchase my Del Taco business?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the Agreement | Summary |
|---|---|---|
| n. Our right of first refusal to acquire your business | 12.6 | We have an option for 30 days to purchase upon same terms and conditions offered to the third party. |
| o. Our option to purchase your business | 12.6 | We have an option to purchase your business upon the termination or expiration of your Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, Del Taco has specific options to purchase a franchisee's business under certain circumstances. Del Taco has a 30-day option to purchase the business if the franchisee receives an offer from a third party that they are willing to accept. This is known as a right of first refusal, allowing Del Taco to match the terms offered to the franchisee by the third party.
Additionally, Del Taco retains the option to purchase the franchise upon the termination or expiration of the Franchise Agreement. This means that at the end of the franchise term, or if the agreement is terminated for any reason, Del Taco can choose to buy the business from the franchisee.
These purchase options are detailed in Section 12.6 of the Franchise Agreement. It is important for prospective franchisees to understand these conditions, as they impact the franchisee's ability to sell the business to a third party or retain it after the franchise term expires. Franchisees should carefully review the terms and conditions within the Franchise Agreement to fully understand their rights and obligations.