What kind of system modifications can Del Taco make, and is the franchisee obligated to implement them?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.29 System Modifications.
Franchisee acknowledges and agrees that from time to time hereafter Del Taco may change or modify the System as Del Taco deems appropriate, including to reflect the changing market and/or to meet new and changing consumer demands, and that variations and additions to the System may be required from time to time to preserve and enhance the public image of the System and operations of Del Taco Restaurants.
Del Taco's changes to the System may include the adoption and use of new or modified products, services, equipment and furnishings and new techniques and methodologies relating to the preparation, sale, promotion and marketing of food and beverage products and services, and new trademarks, service marks and copyrighted materials.
Notwithstanding the provisions and limitations of Section 5.9, Franchisee shall, upon reasonable notice, accept, implement, use and display in the operation of the Restaurant any such changes in the System, as if they were part of this Agreement at the time of execution hereof, at Franchisee's sole expense.
Additionally, Del Taco reserves the right, in its sole discretion, to vary the standards throughout the System, as well as the services and assistance that Del Taco may provide to some franchisees based upon the peculiarities of a particular site or circumstance, existing business practices, or other factors that Del Taco deems to be important to the operation of any Del Taco Restaurant or the System.
Franchisee shall have no recourse against Del Taco on account of any variation to any franchisee and shall not be entitled to require Del Taco to provide Franchisee with a like or similar variation hereunder.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco has the right to modify the System as it deems appropriate to reflect the changing market and consumer demands. These changes may include new or modified products, services, equipment, furnishings, techniques, methodologies for preparing, selling, promoting, and marketing food and beverage products and services, as well as new trademarks, service marks, and copyrighted materials.
Franchisees are generally obligated to implement these changes at their own expense. Del Taco also reserves the right to vary standards throughout the system and the services it provides to some franchisees based on specific site peculiarities, existing business practices, or other factors it deems important. Franchisees have no recourse against Del Taco for any variations granted to other franchisees and cannot demand similar variations for themselves.
Del Taco also has the right to establish reasonable new technology standards in writing to address new technologies and implement those changes into the System. Franchisees must abide by these new standards and pay any associated fees or charges to Del Taco or third parties. If any technology used by the franchisee does not meet Del Taco's specifications, the franchisee must cease using it, and Del Taco can remove it from the Restaurant.
These provisions highlight the importance of franchisees staying current with Del Taco's evolving standards and technology, and being prepared to invest in upgrades and modifications as directed by Del Taco. While these changes aim to enhance the system's competitiveness and public image, franchisees bear the financial responsibility for implementing them.