Does Del Taco acknowledge that some current and former franchisees may be restricted from fully communicating their experiences due to confidentiality clauses?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
In some instances, current and former franchisees sign provisions restricting their ability to speak only about their experience with Del Taco. You may wish to speak with current and former franchisees but be aware that not all such franchisees will be able to communicate with you.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 54–58)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, Del Taco acknowledges that some current and former franchisees may have signed agreements that limit their ability to discuss their experiences with the franchise. Specifically, Item 20 addresses confidentiality clauses and their potential impact on a prospective franchisee's ability to gather information.
This acknowledgement is important for potential franchisees because it highlights that not all current and former franchisees may be able to openly share their opinions or experiences about operating a Del Taco franchise. This could be due to legal restrictions they agreed to as part of their franchise agreement or separation agreement. Therefore, a prospective franchisee might not get a complete or unbiased view of the franchise system if relying solely on conversations with current or former franchisees.
Given this limitation, it is crucial for prospective Del Taco franchisees to conduct thorough due diligence from multiple sources. While speaking with current and former franchisees can provide valuable insights, it is also advisable to consult with franchise attorneys, business advisors, and to carefully review the Franchise Disclosure Document itself. Understanding the potential limitations on franchisee communication can help a prospective franchisee make a more informed decision about investing in a Del Taco franchise.