Under what conditions is it unlawful for Del Taco to repurchase a franchisee's business?

According to the 2025 Del Taco Franchise Disclosure Document, specifically regarding Virginia, it is unlawful for Del Taco to use undue influence to induce a franchisee to surrender any right given to him under the franchise. If any provision of the Franchise Agreement involves the use of undue influence by Del Taco to induce a franchisee to surrender any rights given to him under the franchise, that provision may not be enforceable. This protection is provided under Section 13.1-564 of the Virginia Retail Franchising Act.

This means that Del Taco cannot pressure or coerce a franchisee into giving up their rights related to the franchise agreement. This provision aims to protect franchisees from potentially overbearing tactics by the franchisor. The FDD highlights that any clause in the franchise agreement that allows Del Taco to exert undue influence over a franchisee to surrender their rights may not be legally valid in Virginia.

Prospective franchisees in Virginia should carefully review the franchise agreement for any clauses that could be interpreted as giving Del Taco excessive power or control over their rights. It is advisable to seek legal counsel to ensure full understanding and protection under the Virginia Retail Franchising Act. This measure ensures that the franchisee's rights are safeguarded and that they are not subjected to unfair or coercive practices by Del Taco.