What actions must a Prospective Franchisee take if they are required to disclose Del Taco's Proprietary Information due to a subpoena?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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- If Prospective Franchisee is requested or required to disclose Proprietary Information pursuant to a subpoena or an order of a court or governmental agency, it shall:
- a. Promptly notify Del Taco of the existence, terms and circumstances surrounding the governmental request or requirement;
- b. Consult with Del Taco on the advisability of taking steps to resist or narrow the request;
- c. Cooperate with Del Taco in its efforts to obtain an order or other reliable assurance that confidential treatment be accorded to that portion of the Proprietary Information that is required to be disclosed; and
- d. If disclosure of Proprietary Information is required, furnish only such portion of the Proprietary Information as Prospective Franchisee is advised by its counsel is legally required to be disclosed.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a prospective franchisee faces specific obligations if compelled to disclose proprietary information due to a subpoena or court order. The prospective franchisee must promptly inform Del Taco about the subpoena or order, including its terms, circumstances, and existence.
Following notification, the prospective franchisee is required to consult with Del Taco regarding the advisability of resisting or narrowing the scope of the request. This consultation phase allows Del Taco to provide input and potentially take action to protect its proprietary information.
Furthermore, the prospective franchisee must cooperate with Del Taco in its efforts to secure an order or assurance that confidential treatment will be given to the portion of proprietary information that must be disclosed. Finally, if disclosure is unavoidable, the prospective franchisee is obligated to furnish only the portion of proprietary information that their counsel advises is legally required to be disclosed.