factual

What is a Del Taco franchisee required to do with Customer Data if they transfer their restaurant?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

However, if Franchisee Transfers the Restaurant (as provided in Section 12.3 below), as part of the Transfer, Franchisee must also Transfer use of the Customer Data to the buyer as part of the total purchase price paid for the Restaurant.

Source: Item 22 — CONTRACTS (FDD pages 58–59)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee must transfer the use of Customer Data to the buyer as part of the total purchase price if they transfer their restaurant. Customer Data is defined as all data collected from customers and potential customers in connection with the franchised business and is owned exclusively by Del Taco. The franchisee's right to use this data is limited to operating the restaurant and marketing "Del Taco brand" products and services, in accordance with Del Taco's policies.

This requirement ensures that the new owner of the Del Taco franchise can continue to market to existing customers and maintain customer relationships. It also reinforces Del Taco's ownership and control over customer data, allowing them to maintain consistency in branding and marketing efforts across all franchise locations. The franchisee must also secure all necessary consents and authorizations to transmit the Customer Data to Del Taco and its affiliates.

This stipulation is fairly standard in franchising, as customer data is a valuable asset. By mandating the transfer of this data, Del Taco aims to preserve the continuity of the business and maintain a consistent customer experience. Franchisees should be aware of this obligation when considering a transfer, as it impacts the overall value and terms of the sale.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.