What is a Del Taco licensee required to do upon discovering a prohibited use or disclosure of Confidential Information?

According to Del Taco's 2025 Franchise Disclosure Document, a licensee must take immediate action upon discovering any prohibited use or disclosure of confidential information. Specifically, the licensee is required to notify Del Taco immediately. Furthermore, the licensee must fully cooperate with Del Taco to help them regain possession of the confidential information and prevent any further prohibited use or disclosure. This includes assisting Del Taco in any efforts to protect the information and mitigate potential damages.

This requirement highlights the importance Del Taco places on protecting its confidential information, which includes trade secrets, operating procedures, and other proprietary knowledge. The obligation to notify Del Taco immediately underscores the need for franchisees to be vigilant in safeguarding this information and to act swiftly if a breach occurs. By mandating full cooperation, Del Taco ensures that it can take appropriate steps to address the situation and minimize any potential harm to its business and brand.

For a prospective Del Taco franchisee, this means understanding the scope of confidential information and implementing robust security measures to prevent unauthorized access or disclosure. It also means establishing clear protocols for employees to follow in handling confidential information and ensuring they are aware of their obligations under the franchise agreement. Failure to comply with these requirements could result in legal action and financial penalties, as well as damage to the franchisee's relationship with Del Taco.

This type of clause is standard in franchise agreements across many industries, as franchisors need to protect their intellectual property and business methods. Franchisees should carefully review the confidentiality provisions in their franchise agreements and seek legal advice if they have any questions or concerns.