If litigation is instituted against Del Taco relating to the Marks, what is the franchisee's obligation?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement requires that we protect any or all rights that you have to use our principal Marks and to protect you against claims of infringement or unfair competition with respect to the same. You must inform us promptly in writing of any infringement of the Marks by another party and of any litigation instituted against Del Taco relating to the Marks. We have the right, but not the obligation, to take action as we deem advisable to prevent any infringement and to join you as a party, if necessary. You must assist us, as our counsel decides appropriate, in protecting our interest in the Marks.
If we decide, in our sole discretion, to modify or discontinue use of any name or Mark and/or use one or more additional or substitute names or Marks, you must do so and we do not have to reimburse you for any costs associated with complying with that obligation.
We do not have to indemnify you against, or reimburse you for, any damages that you suffer in any proceeding arising out of the use of any name or Mark or for any costs incurred by you in the defense of any of those claims.
Source: Item 13 — TRADEMARKS (FDD pages 40–41)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding the brand's trademarks. If a franchisee becomes aware of any infringement of Del Taco's trademarks by another party, they must promptly inform Del Taco in writing. Furthermore, if any litigation is instituted against Del Taco relating to its trademarks (referred to as "Marks"), the franchisee is obligated to notify Del Taco promptly in writing.
Del Taco retains the right, but not the obligation, to take any action it deems necessary to prevent trademark infringement and may involve the franchisee in such legal proceedings if needed. The franchisee is required to assist Del Taco, as directed by their counsel, in protecting Del Taco's interest in its trademarks.
This obligation ensures that Del Taco can act swiftly to protect its brand identity and legal rights. While Del Taco has the right to modify or discontinue the use of any name or mark, they are not required to reimburse the franchisee for any costs associated with complying with this obligation. Additionally, Del Taco does not have to indemnify the franchisee against, or reimburse them for, any damages suffered in proceedings arising from the use of any name or mark.