What are 'Equipment Upgrades' for a Del Taco franchise, as defined in the contract?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.11 Equipment Upgrades.
In addition to Facilities Remodeling, Franchisee shall make, from time to time, such upgrades and other changes to the kitchen equipment and electronic equipment utilized in the Restaurant and the Technology System as Del Taco may request in writing (and as also specified above) (collectively, "Equipment Upgrades").
Del Taco shall have the right to require any Equipment Upgrades it deems necessary for Franchisee's Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, 'Equipment Upgrades' encompass upgrades and changes to kitchen and electronic equipment, as well as the Technology System within the restaurant. Del Taco retains the right to mandate these Equipment Upgrades as deemed necessary for the franchisee's restaurant. These upgrades are changes that Del Taco may request in writing.
This requirement means that franchisees must be prepared to invest in updates to their restaurant's equipment and technology as directed by Del Taco. The frequency and cost of these upgrades are not defined, so a prospective franchisee should inquire about the typical scope and expense of such upgrades. This could include new ovens, fryers, point-of-sale systems, or software.
The obligation to implement Equipment Upgrades ensures that all Del Taco restaurants maintain a consistent brand standard and operational efficiency. However, it also introduces a degree of financial uncertainty for franchisees, as they must be ready to cover the costs of upgrades that Del Taco deems necessary. Franchisees should discuss with existing franchisees to understand the potential financial impact of these required upgrades.