Is Del Taco involved in the financial planning of its franchisees?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
ny manner, including, without limitation, providing financial and operating reports to franchisees and operators operating under the System, preparing franchise disclosure documents, and providing information to prospective franchisees, and/or in complying with government regulations.
- 7.6 Accounting and Bookkeeping Services. Del Taco reserves the right to require that Franchisee retain and utilize an accounting and bookkeeping service or company that is designated, specified or approved by Del Taco, from the Effective Date of this Agreement through the period that is ninety (90) days after the completion of Franchisee's second full calendar year of operation of the Restaurant following the opening of the business. Franchisee shall pay such service or company the fees
and costs charged by the service or company, shall use such on-line, electronic, and paper reporting systems specified by such service or company, and shall submit reports to Del Taco as required under this Agreement or in the Manual. In addition, in the event Franchisee fails to comply with any reporting requirement under this Section 7.6 or in the Manuals, or fails to make timely, accurate and complete payments as required under this Agreement, Del Taco has the right to require that Franchisee utilize an accounting or bookkeeping service or company designated or specified by Del Taco for a period of not less than two (2) years. Franchisee will provide to the service or company complete and accurate information required by Del Taco and the service or company, and Franchisee acknowledges and agrees that Del Taco will have full access to the data and information that Franchisee provides to the accounting or bookkeeping service or company.
8. Proprietary Marks.
- 8.1 Ownership of the Proprietary Marks. Del Taco represents with respect to the Proprietary Marks that:
- 8.1.1 Del Taco is the owner of all right, title, and interest in and to the Proprietary Marks.
- 8.1.2 Del Taco has taken and will take all steps reasonably necessary to preserve and protect Del Taco's ownership of, and validity in, the Proprietary Marks.
- 8.2 Use of the Proprietary Marks. With respect to Franchisee's use of the Proprietary Marks, Franchisee agrees that:
- 8.2.1 Franchisee shall use only the Proprietary Marks designated by Del Taco, and shall use them only in the manner authorized and permitted by Del Taco; all items bearing the Proprietary Marks shall bear the then-current logo.
- 8.2.2 Franchisee shall use the Proprietary Marks only for the operation of the business franchised hereunder and only at the location authorized hereunder, or in Del Taco approved advertising for the business conducted at or from that location.
- 8.2.3 Unless Del Taco otherwise directs Franchisee, in writing, to do so, Franchisee shall operate and advertise the Restaurant only under the name "Del Taco," without prefix or suffix.
- 8.2.4 During the term of this Agreement and any renewal of this Agreement, Franchisee shall identify itself (in a manner reasonably acceptable to Del Taco) as the owner of the Restaurant in conjunction with any use of the Proprietary Marks, including uses on invoices, order forms, receipts, and contracts, as well as the display of a notice in such content and form and at such conspicuous locations on the premises of the Restaurant as Del Taco may designate in writing.
- 8.2.5 Franchisee's right to use the Proprietary Marks is limited to such uses as are authorized under this Agreement, and any unauthorized use thereof shall constitute an infringement of Del Taco's rights.
Source: Item 10 — FINANCING (FDD page 31)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco does not directly provide financial planning services to its franchisees. However, Del Taco reserves the right to mandate that franchisees utilize an accounting and bookkeeping service or company that Del Taco designates, specifies, or approves. This requirement extends from the effective date of the franchise agreement through 90 days after the completion of the franchisee's second full calendar year of operation following the business opening. The franchisee is responsible for paying the fees for this service.
Del Taco also collects data from franchisees, including customer data, transaction data, and other information related to the operation of the business. Del Taco owns this data and may use it in any manner it deems appropriate, including providing financial and operating reports to franchisees and operators within the Del Taco system. This data can also be used for preparing franchise disclosure documents and complying with government regulations.
Furthermore, when a franchisee proposes to transfer their obligations or any interest in the assets of the restaurant, Del Taco requires the franchisee and the proposed transferee to provide all information and documents necessary for evaluating the proposed transfer. This includes the business and financial terms of the proposed transaction, financial and operational information regarding the proposed transferee, and evidence of any financing required to complete the transaction and fund the transferee's operation after the transfer. While this doesn't constitute direct financial planning, it does give Del Taco insight into the franchisee's financial dealings and the financial stability of potential transferees.
While Del Taco does not offer direct financial planning, the brand's involvement in mandating accounting services and collecting/utilizing franchisee data suggests an indirect role in overseeing the financial health of its franchise locations. Prospective franchisees should inquire about the specific accounting services Del Taco approves and the associated costs to fully understand this aspect of the franchise agreement.