What is the meaning of 'Del Taco System' as defined in the Del Taco Development Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
RECITALS
- A. Del Taco engages in the business of owning, operating, and granting franchises to others to own and operate Del Taco restaurants for the sale of food items featuring Mexican-American dishes. Del Taco has developed a system with respect to its operations and management that includes (without limitation) the following items:
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- Site selection and layout criteria;
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- Designs for various types of standardized Del Taco buildings;
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- Signs, graphics, names, logos and other decorative features;
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- Recipes and menus;
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- Furniture, fixtures, kitchen display systems and equipment specifications;
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- Marketing and advertising materials;
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- Operating procedures, including operating and management manuals;
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- Training procedures and materials;
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- Specifications for food products and supplies; and
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- Other materials and procedures that Del Taco may develop and use in the development, construction and operation of Del Taco restaurants.
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All of the above, as Del Taco may change or modify from time to time, shall constitute the "Del Taco System."
- B. Del Taco has established an excellent reputation and goodwill with the public with respect to the quality of products and services available at Del Taco restaurants, which reputation and goodwill have been and continue to be of major benefit to Del Taco and its franchisees.
- C. The Developer recognizes the benefits from being identified with and licensed by Del Taco and being able to utilize the Del Taco System.
- D. The Developer desires to obtain the right to develop Del Taco restaurants in the development area referred to in this Agreement, all upon the terms and conditions set forth in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the 'Del Taco System' refers to the specific methods, procedures, and materials that Del Taco has developed for its restaurant operations and management. This system is integral to maintaining consistency and quality across all Del Taco restaurants.
The Del Taco System encompasses a wide array of elements, including site selection criteria, standardized building designs, signage, graphics, names, logos, recipes, menus, furniture, fixtures, kitchen display systems, equipment specifications, marketing materials, operating procedures (including manuals), training procedures, and specifications for food products and supplies. Del Taco retains the right to modify or change any aspect of the Del Taco System over time.
As stated in the recitals of the Del Taco Development Agreement, Del Taco has established a strong reputation and goodwill with the public, which benefits both Del Taco and its franchisees. Developers recognize the value of being associated with Del Taco and utilizing the Del Taco System. The agreement grants developers the right to develop Del Taco restaurants within a specific area, subject to the terms and conditions outlined in the agreement. The developer is granted rights to develop restaurants, but this agreement does not grant any right to use the Del Taco System.