Is the Del Taco franchisee obligated to help Del Taco secure patents, trademarks, or copyrights for franchisee-developed ideas?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to disclose to Del Taco all ideas, concepts, methods, techniques and products conceived or developed by Franchisee, its affiliates, owners, agents, or employees during the term of this Agreement relating to the development and/or operation of the Restaurant, and Del Taco shall be the sole owner of any such ideas, concepts, methods, techniques and products, which shall be deemed a work made for hire (or to the extent the work may not be deemed a "work made for hire" under applicable law, Franchisee hereby irrevocably assigns to Del Taco, for no additional consideration, all right, title and interest in and to any patents, trademarks, copyrights, trade secrets and any other proprietary rights), and there are no restrictions on use, and no compensation shall be due to Franchisee.
Franchisee agrees to cooperate fully in obtaining any patents, trademarks or copyrights.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees are obligated to assist Del Taco in securing patents, trademarks, or copyrights for any ideas they develop related to the restaurant's operation. The franchisee must disclose all ideas, concepts, methods, techniques, and products conceived or developed by the franchisee or their affiliates during the term of the agreement.
Del Taco will be the sole owner of these ideas, which are considered a work made for hire. If the work cannot be legally considered a "work made for hire", the franchisee irrevocably assigns all rights, titles, and interests in any patents, trademarks, copyrights, trade secrets, and other proprietary rights to Del Taco without additional compensation. There are no restrictions on Del Taco's use of these ideas, and the franchisee will not be entitled to any compensation.
The franchisee explicitly agrees to fully cooperate with Del Taco in obtaining any patents, trademarks, or copyrights related to these developments. This clause ensures that Del Taco maintains complete control and ownership over any innovations or improvements related to the Del Taco system, even if those ideas originate from the franchisee.