What is a Del Taco franchisee required to do if they suspect infringement of the Proprietary Marks?

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee is required to promptly notify Del Taco of any suspected infringement of the Proprietary Marks. This includes any known challenge to the validity of the Proprietary Marks, or any known challenge to Del Taco's ownership of, or the franchisee's right to use, the Proprietary Marks licensed under the franchise agreement. The franchisee acknowledges that Del Taco has the right to direct and control any administrative proceeding or litigation involving the Proprietary Marks, including any settlement. Del Taco also has the right, but not the obligation, to take action against uses by others that may constitute infringement of the Proprietary Marks.

This requirement ensures that Del Taco maintains control over its brand and intellectual property. By promptly reporting any suspected infringement, franchisees help Del Taco protect its trademarks and prevent unauthorized use of its brand. This is crucial for maintaining brand consistency and preventing consumer confusion, which could negatively impact the entire Del Taco system.

Furthermore, the franchisee is required to execute any documents and perform any actions deemed necessary by Del Taco's counsel to defend or prosecute litigation related to the Proprietary Marks, potentially including becoming a nominal party to legal action. Franchisees are also prohibited from contesting the validity of Del Taco's ownership of the Proprietary Marks or seeking to register the Proprietary Marks with any government agency without Del Taco's express prior written consent. These stipulations reinforce Del Taco's control over its intellectual property and ensure franchisees do not take actions that could undermine the brand's legal standing.

Del Taco's right to manage and control legal proceedings related to its Proprietary Marks is standard practice in franchising. This allows Del Taco to ensure consistent legal strategies and protect the overall brand. While franchisees are obligated to assist in these efforts, Del Taco typically bears the costs of litigation unless the litigation arises from the franchisee's inconsistent use of the Proprietary Marks with the franchise agreement.