Is a Del Taco licensee allowed to use the software in a time-sharing environment?

According to the 2025 Del Taco Franchise Disclosure Document, licensees are explicitly prohibited from using the licensed software in a time-sharing environment. The agreement specifies that franchisees cannot use the software to operate in or as a time-sharing, outsourcing, or service bureau environment, or in any way allow third-party access to the software. This restriction is in place to protect Del Taco's software and maintain control over its use.

This restriction means that a Del Taco franchisee must use the software solely for their internal business operations at the licensed restaurant. They cannot share access to the software with external parties or use it to provide services to other businesses. This limitation ensures that the software is used only for its intended purpose: labor scheduling, calculating ideal food costs, and maintaining inventory and sales records within the franchisee's own Del Taco location.

The FDD also grants Del Taco the right to periodically inspect the licensed restaurants to verify the franchisee's compliance with the terms of the agreement, including the use of the software. This inspection right allows Del Taco to ensure that franchisees are adhering to the restrictions on software use and not engaging in any unauthorized time-sharing or third-party access.

Overall, the strict limitations on software use are typical in franchising, as franchisors seek to protect their intellectual property and maintain consistent standards across all franchise locations. Prospective Del Taco franchisees should be aware of these restrictions and ensure they have the necessary infrastructure and resources to comply with the software usage terms.