If Del Taco approves a new service, is the franchisee obligated to offer it?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that from time to time hereafter Del Taco may change or modify the System as Del Taco deems appropriate, including to reflect the changing market and/or to meet new and changing consumer demands, and that variations and additions to the System may be required from time to time to preserve and enhance the public image of the System and operations of Del Taco Restaurants.
Del Taco's changes to the System may include the adoption and use of new or modified products, services, equipment and furnishings and new techniques and methodologies relating to the preparation, sale, promotion and marketing of food and beverage products and services, and new trademarks, service marks and copyrighted materials.
Notwithstanding the provisions and limitations of Section 5.9, Franchisee shall, upon reasonable notice, accept, implement, use and display in the operation of the Restaurant any such changes in the System, as if they were part of this Agreement at the time of execution hereof, at Franchisee's sole expense.
Additionally, Del Taco reserves the right, in its sole discretion, to vary the standards throughout the System, as well as the services and assistance that Del Taco may provide to some franchisees based upon the peculiarities of a particular site or circumstance, existing business practices, or other factors that Del Taco deems to be important to the operation of any Del Taco Restaurant or the System.
Franchisee shall have no recourse against Del Taco on account of any variation to any franchisee and shall not be entitled to require Del Taco to provide Franchisee with a like or similar variation hereunder.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 42)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees are generally obligated to implement changes to the Del Taco system, including new services. Specifically, Del Taco may modify the system to reflect market changes or meet consumer demands, which may include adopting new products, services, equipment, and techniques.
According to the FDD, franchisees must accept and implement these changes at their own expense upon receiving reasonable notice from Del Taco. This obligation applies as if the changes were part of the original franchise agreement. This means a Del Taco franchisee cannot refuse to offer a new service that Del Taco has implemented system-wide.
This requirement ensures uniformity and consistency across all Del Taco locations, which helps maintain the brand's image and operational standards. While franchisees bear the cost of implementing these changes, the goal is to enhance the overall performance and appeal of the Del Taco system. Franchisees do not have recourse against Del Taco for these required variations and cannot demand similar variations for themselves.