If a prospective franchisee is requested to disclose Del Taco's Proprietary Information, what is the prospective franchisee required to do?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- If Prospective Franchisee is requested or required to disclose Proprietary Information pursuant to a subpoena or an order of a court or governmental agency, it shall:
- a. Promptly notify Del Taco of the existence, terms and circumstances surrounding the governmental request or requirement;
- b. Consult with Del Taco on the advisability of taking steps to resist or narrow the request;
- c. Cooperate with Del Taco in its efforts to obtain an order or other reliable assurance that confidential treatment be accorded to that portion of the Proprietary Information that is required to be disclosed; and
- d. If disclosure of Proprietary Information is required, furnish only such portion of the Proprietary Information as Prospective Franchisee is advised by its counsel is legally required to be disclosed.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a prospective franchisee has specific obligations if they are required to disclose Del Taco's Proprietary Information due to a subpoena or court order.
First, the prospective franchisee must promptly inform Del Taco about the request, including the details and circumstances surrounding it. This ensures Del Taco is aware of the situation and can prepare accordingly.
Second, the prospective franchisee is obligated to consult with Del Taco regarding the possibility of resisting or narrowing the scope of the disclosure request. This allows Del Taco to provide input and potentially limit the amount of confidential information that needs to be revealed.
Third, the prospective franchisee must cooperate with Del Taco in seeking an order or assurance that the disclosed Proprietary Information will be treated confidentially. Finally, if disclosure is unavoidable, the prospective franchisee should only reveal the portion of Proprietary Information that their counsel advises is legally required.