If a Del Taco franchisee continues to operate another business after termination, what are the restrictions regarding the use of proprietary marks?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall immediately and permanently cease to use, in any manner whatsoever, any confidential methods, procedures and techniques associated with the System, the mark "Del Taco" and all other Proprietary Marks and distinctive forms, slogans, signs, symbols, and devices associated with the System.
In particular, Franchisee shall cease to use all signs, advertising materials, displays, stationery, forms, and any other articles that display the Proprietary Marks, remove all such articles and/or permit Del Taco to enter the Restaurant and remove or permanently cover all signs or advertisements identifiable in any way with Del Taco's name or business, at Franchisee's expense.
- 14.1.3 Cancellation of Assumed Names.
Franchisee shall take such action as may be necessary to cancel any assumed name or equivalent registration which contains the Proprietary Mark "Del Taco" and all other Proprietary Marks, and/or any other service mark or trademark, and Franchisee shall furnish Del Taco with evidence satisfactory to Del Taco of compliance with this obligation within five (5) days after termination or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, a franchisee must immediately and permanently cease all use of Del Taco's proprietary marks upon termination or expiration of the franchise agreement. This restriction applies regardless of whether the franchisee continues to operate another business.
Specifically, the franchisee must stop using any confidential methods, procedures, and techniques associated with the Del Taco system. They must also cease using the "Del Taco" mark and all other proprietary marks, distinctive forms, slogans, signs, symbols, and devices associated with the system. This includes removing or covering all signs, advertising materials, displays, stationery, forms, and any other articles that display Del Taco's proprietary marks, at the franchisee's own expense.
Furthermore, the franchisee is obligated to cancel any assumed name or equivalent registration that contains the proprietary mark "Del Taco" or any other Del Taco service mark or trademark. Evidence of compliance with this cancellation must be furnished to Del Taco within five days after termination or expiration of the agreement. These measures ensure that the franchisee cannot continue to benefit from Del Taco's brand recognition or intellectual property after the franchise relationship ends, protecting Del Taco's brand integrity and preventing consumer confusion.