If Del Taco discontinues publication or distribution of the Software and Documentation, what happens to the License Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
d Restaurants without prior notice. Del Taco may, in its sole discretion, immediately terminate this Agreement or the License granted with respect to any Licensed Restaurant(s): (i) without prior notice, if Licensee fails to pay the License Fee or Support Services Fee pertaining to that Licensed Restaurant within 30 days after it is due; (ii) without prior notice, if the franchise or license agreement for that Licensed Restaurant is terminated; (iii) without pr
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, if Del Taco discontinues publication or distribution of the Software and Documentation for any reason, the License Agreement terminates immediately with respect to all Licenses. In this event, Del Taco will refund or credit a pro rata portion of any License Fees already paid by the franchisee. The determination of the pro rata amount is at Del Taco's sole discretion.
This clause protects Del Taco by allowing them to end the agreement if they no longer support the software. It also provides a mechanism for compensating franchisees for the unused portion of their license fees, although the exact amount is determined by Del Taco.
For a prospective Del Taco franchisee, this means that the software license is contingent on Del Taco's continued support and distribution of the software. If Del Taco decides to discontinue the software, the franchisee's license will end, and they will receive a refund or credit for any prepaid license fees, with the amount determined at Del Taco's discretion. This introduces a degree of uncertainty, as the franchisee's access to the software could be terminated, and the compensation is not guaranteed to cover any losses incurred as a result of the termination.