If Del Taco discontinues publication or distribution of the Software and Documentation, will Del Taco refund any License Fees already paid by the Licensee?
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, Del Taco may discontinue the publication or distribution of its software and documentation for any reason. If this occurs, the agreement between Del Taco and the franchisee will terminate immediately with respect to all licenses. In such an event, Del Taco will refund or credit a pro rata portion of any license fees already paid by the franchisee.
However, the FDD stipulates that the amount of the refund or credit will be determined by Del Taco at its sole discretion. This means that while a refund is promised, the actual amount returned to the franchisee is not guaranteed and is subject to Del Taco's assessment.
This clause presents a potential risk for franchisees, as they may not recover the full value of the license fee if the software and documentation are discontinued. Prospective franchisees should consider this when evaluating the overall cost and risk associated with the Del Taco franchise and may want to seek clarification or negotiation on this term.