factual

Is a Del Taco franchisee required to purchase customer relationship management services and software from Del Taco or its affiliates?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

Under the Franchise Agreement, you must also purchase customer relationship management services and software, for which we or our affiliates may be the only approved supplier. These requirements help to establish quality control standards for the items used in the operation of your Restaurant and to protect, maintain and promote the product consistency, reputation, goodwill, and public acceptance of our service marks, trademarks and products.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–30)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, franchisees are required to purchase customer relationship management services and software. Del Taco or its affiliates may be the only approved supplier for these services and software. This requirement is in place to help maintain quality control standards for the items used in the operation of the Del Taco restaurant, as well as to protect the consistency, reputation, goodwill, and public acceptance of Del Taco's service marks, trademarks, and products.

This means that a prospective Del Taco franchisee may not have a choice in selecting a provider for customer relationship management (CRM) services and software. They must purchase these services from Del Taco or its affiliates if they are the only approved supplier. This could potentially limit the franchisee's ability to negotiate pricing or customize the CRM system to their specific needs.

While the FDD specifies that Del Taco may be the only approved supplier for CRM services, it does not elaborate on the costs associated with these services. A potential franchisee should inquire about the specific costs, terms, and functionalities of the required CRM services and software to fully understand the financial implications. It would also be prudent to understand if there are alternative approved suppliers and the criteria for becoming an approved supplier if a franchisee prefers a different vendor.

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.