Does the Del Taco Guarantee grant the undersigned any right to use the "Del Taco" Marks or System?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned each hereby jointly and severally acknowledge and expressly agree to be individually bound by all of the covenants contained in Sections 8, 9, and 10 of the Agreement, and acknowledge and agree that this Guarantee does not grant the undersigned any right to use the "Del Taco" Marks or System licensed to Franchisee under the Agreement.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the Guarantee signed by the undersigned does not grant them any rights to use the "Del Taco" Marks or System. The guarantee primarily serves to ensure that the undersigned agrees to defend, indemnify, and hold Del Taco harmless from any losses, damages, liabilities, costs, and expenses resulting from the franchisee's failure to fulfill their obligations under the Franchise Agreement. This includes any amendments or other agreements related to the franchise.
The guarantee also explicitly binds the undersigned to the covenants outlined in Sections 8, 9, and 10 of the Franchise Agreement. These sections likely cover critical aspects of the franchise operation, such as adherence to standards, protection of proprietary information, and other key obligations. By agreeing to the guarantee, the undersigned acknowledges their individual responsibility for the franchisee's compliance with these covenants.
This provision clarifies that the guarantee is solely a commitment to uphold the franchisee's obligations and does not extend any licensing rights to the Del Taco Marks or System to the guarantor. This is a standard practice in franchising, ensuring that only the franchisee, who has entered into the Franchise Agreement, is authorized to operate under the brand and utilize its intellectual property. The guarantee terminates upon the termination or expiration of the Franchise Agreement, with the exception of obligations and liabilities that arose before the termination date and covenants that continue in force after termination according to their terms.