What is a Del Taco Developer required to do with the Del Taco System and all parts of it?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) The Developer and its Affiliates shall not use, in connection with the operation of any restaurant (other than the Restaurant) any part of the Del Taco System or any other names, marks, systems, logos, symbols or foodstuffs provided by Del Taco or proprietary foodstuffs provided by an approved vendor to the Developer or cause or permit any restaurant to offer Mexican food or look like, copy or imitate the Restaurant other than pursuant to an agreement with Del Taco.
(b) The Developer and its Affiliates shall hold the Del Taco System and all parts of the Del Taco System in confidence.
The Developer acknowledges that Del Taco has developed the Del Taco System over an extended period of time and at a substantial cost to Del Taco and, if used by other persons, firms or entities, would give those other persons, firms or entities an unfair competitive advantage.
The Developer shall not disclose (except to employees or agents that need access to the information in order to construct or operate the Restaurant) or use or permit the use of the Del Taco System, or any part of the Del Taco System, except as authorized by this Agreement.
- (c) The Developer and its Affiliates shall treat as and keep confidential the Standard Operating Procedures Manual, any other manuals or materials designated for use with the Del Taco System, and any other information Del Taco may designate from time to time for confidential use with the Del Taco System, as well as all other trade secrets, confidential information, knowledge and know-how concerning the construction or operation of the Restaurant imparted to, or acquired by, the Developer from time to time in connection with this Agreement.
The Developer acknowledges the unauthorized use or disclosure of that confidential information and trade secrets will cause incalculable and irreparable injury to Del Taco.
The Developer accordingly agrees that it shall not disclose (except to employees or agents that need access to the information in order to construct or operate the Restaurant) or use or permit the use of that information, in whole or in part, or otherwise make the same available to any unauthorized person or source.
Any and all information, knowledge and know-how about the Del Taco System; Del Taco's products, services, standards, specifications, systems, procedures and techniques; and any other information or material Del Taco may designate as confidential shall constituted confidential information for the purposes
of this Agreement. The Standard Operating Procedures Manual; any other manuals or materials designated for use with the Del Taco System; the knowledge concerning the logic, structure and operation of computer software programs that Del Taco authorizes for use in connection with the operation of the Restaurants; and all confidential information and trade secrets shall remain the sole property of Del Taco, and the Developer shall not acquire any right, title or interest in it by virtue of its authorization pursuant to this Agreement to possess and use the same.
- (d) The Developer shall cause each person actively involved in the management or operation of the business of the Developer or the operation of the Restaurant, at the time of his or her employment, to enter into a confidentiality agreement in the form required from time to time by Del Taco.
The Developer shall prevent any person from using, in connection with the operation of any restaurant, the Del Taco System or from operating any restaurant which offers Mexican food or looks like, copies, competes with, or imitates the Restaurant or any Del Taco restaurant or operates in a manner that seeks to serve the same customers as Del Taco or any franchisee of Del Taco, other than pursuant to an agreement with Del Taco.
If the Developer has reason to believe that any person has violated the provisions of the confidentiality agreement or this Section 17, the Developer shall notify Del Taco and shall cooperate with Del Taco to protect Del Taco against infringement or other unlawful use of the Del Taco System, including (without limitation) the prosecution of any lawsuits if deemed necessary or advisable by Del Taco.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, a Del Taco Developer has specific obligations regarding the Del Taco System. The Developer and its Affiliates must hold the Del Taco System and all its components in confidence. They are prohibited from using any part of the Del Taco System in connection with any restaurant operation other than a Del Taco Restaurant, or from offering Mexican food that resembles or imitates a Del Taco Restaurant, unless explicitly agreed upon with Del Taco.
The Developer must not disclose or permit the use of the Del Taco System, except as authorized by their agreement with Del Taco. This restriction extends to the Standard Operating Procedures Manual, confidential information, trade secrets, and any other materials designated for use with the Del Taco System. The Developer is required to treat all such information as confidential and prevent its unauthorized use or disclosure, as unauthorized use could cause significant harm to Del Taco.
Furthermore, the Developer must ensure that anyone involved in managing or operating their business signs a confidentiality agreement in the form required by Del Taco. They must also prevent anyone from using the Del Taco System in connection with any restaurant that offers Mexican food or competes with Del Taco, except under an agreement with Del Taco. If the Developer suspects any violation of these confidentiality provisions, they are obligated to notify Del Taco and cooperate in protecting the Del Taco System against infringement or unlawful use, including participating in lawsuits if necessary.