Does the Del Taco agreement create a partnership or joint venture?

According to the 2025 Del Taco Franchise Disclosure Document, the Non-Disclosure Agreement explicitly states that it should not be construed as a partnership or joint venture. This clarifies the limited scope of the agreement, emphasizing that its sole purpose is to protect proprietary information. This statement helps to ensure that the relationship between Del Taco and the prospective franchisee is clearly defined and understood to be for the protection of confidential information only, and not a broader business partnership.

This provision is important for prospective franchisees as it confirms that the Non-Disclosure Agreement does not create any shared liability or business obligations beyond the protection of Del Taco's proprietary information. Franchisees should be aware that this clause is specifically included to avoid any implication of a partnership or joint venture, which could have significant legal and financial ramifications.

It is common practice in franchising to include such disclaimers to clearly define the relationship between the franchisor and franchisee. This helps to avoid any potential legal disputes or misunderstandings regarding the nature of their association. Franchisees should carefully review all agreements to understand the specific terms and conditions that govern their relationship with Del Taco.