What are the ways that Del Taco may update or modify the insurance requirements for franchisees?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, Franchisee shall obtain and maintain in full force and effect, at its own expense, such insurance coverages as may be required of franchisees by Del Taco.
The current insurance requirements are listed in this Section; provided that Del Taco may update or modify the insurance requirements in the Manuals, may provide changed or modified insurance requirements in any lease agreement between Del Taco (or its Affiliates) and Franchisee, or may otherwise change or modify insurance requirements in writing by Company, at its sole discretion.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco can modify the insurance requirements for franchisees in a few different ways. The insurance requirements that Del Taco franchisees must adhere to during the term of their Franchise Agreement can be updated or modified in the Manuals. These manuals contain the standards and specifications that Del Taco prescribes to ensure a consistent level of quality and service.
Del Taco can also change or modify insurance requirements in any lease agreement between Del Taco (or its Affiliates) and the franchisee. This means that the specific terms of the lease for the restaurant location could include updated insurance obligations. Finally, Del Taco retains the right to change or modify insurance requirements in writing, at its sole discretion. This provides Del Taco with broad authority to adjust the required insurance coverage as it sees fit.
It is important for prospective Del Taco franchisees to understand that the insurance requirements can change and to factor in the potential costs of increased or modified coverage into their financial planning. Franchisees should also maintain open communication with Del Taco to stay informed about any upcoming changes to insurance requirements and to ensure they remain in compliance with the Franchise Agreement.