Who bears the expense of complying with Del Taco's written specifications for the Technology System, Required Software, and Technology Upgrades?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
5.15.5 Franchisee agrees to comply with Del Taco's written specifications (whether in the Manuals or otherwise) with respect to the Technology System and the Required Software, and with respect to Technology Upgrades, at Franchisee's own expense.
5.15 Technology System.
At Del Taco's request, Franchisee shall purchase or lease, and thereafter maintain, the Technology System, and comply with Del Taco's requirements, specifications and policies concerning the use of technology, as they may be specified in this Agreement, or specified or modified in the Manuals or otherwise in writing, at Franchisee's own cost and expense.
To ensure full operational efficiency and optimum communication capability between and among equipment and computer systems installed by Franchisee, Del Taco, and other franchisees, Franchisee agrees, at its expense, that Franchisee shall keep its Technology System in good maintenance and repair, and, at its expense, and following the determination that Del Taco shall have the right to make, to the effect that same will prove economically or otherwise beneficial to all System franchisees, that Franchisee shall promptly install such additions, changes, modifications, substitutions and/or replacement to Franchisee's computer hardware, software, telephone and power lines, and other related facilities, as Del Taco directs periodically in writing.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the franchisee is responsible for covering the costs associated with adhering to Del Taco's written specifications for the Technology System, Required Software, and Technology Upgrades. This includes the initial implementation, periodic upgrades, and any other changes Del Taco reasonably requests in writing.
This means that as a Del Taco franchisee, you will need to budget for these technology-related expenses. These costs can include purchasing or leasing the technology system, maintaining it, and paying any associated support service fees. Del Taco retains the right to increase the Technology Systems Support Services Fee with notice to the franchisee.
Furthermore, franchisees are obligated to keep their Technology System in good repair and maintenance at their own expense. If Del Taco determines that additions, changes, modifications, substitutions, or replacements to computer hardware, software, telephone and power lines, and other related facilities will benefit all System franchisees, the franchisee must promptly install them at their own expense. This ensures that all Del Taco locations maintain consistent technology standards, but it also places the financial burden of these updates on the franchisee.