Does the Del Taco Non-Disclosure Agreement specify any financial thresholds related to the disclosure or use of Proprietary Information?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
------|---------------| | , 20 | , between Del | | Taco, LLC, a California limited liability company, having its principal place of business at 25521 | Commercentre | | Drive, Suite 150, Lake Forest, California 92630 ("Del Taco"); and | _,a corporation, | | having its principal place of business at | ("Prospective | | Franchisee") (collectively, "Parties"). | | WHEREAS, Del Taco is the owner of certain proprietary and confidential information, which may include but is not limited to financial data, operating procedures, marketing information, business strategies (hereinafter referred to as "Proprietary Information");
WHEREAS, Prospective Franchisee is interested in having access to such Proprietary Information for the purpose of determining whether it is interested in entering into a franchising relationship;
NOW THEREFORE, considering the following premises, and intending to be legally bound thereby, it is agreed as follows:
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- Prospective Franchisee will keep confidential the Proprietary Information that may be disclosed to it orally or in writing.
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- Proprietary Information may be disclosed by the Prospective Franchisee only to those of its employees, agents and consultants who need to know such Proprietary Information for the purpose described above, who have been informed of the confidential nature of such information, and who are obligated to maintain such information in confidence.
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- Prospective Franchisee will not disclose such Proprietary Information to any third party without the prior written consent of Del Taco.
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- Prospective Franchisee will not use such Proprietary Information for any purpose other than the purpose for which disclosed.
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- All tangible Proprietary Information furnished by Del Taco shall be subject to repossession by Del Taco at any reasonable time upon request, and at all times while in the possession of the receiving party shall be segregated and physically identified as Del Taco's property. All documents and other tangible expressions of the Proprietary Information shall be returned to Del Taco or be destroyed, if so instructed in writing by Del Taco.
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- Proprietary Information shall not include, and the obligations set forth above shall not apply to, information which:
- a. Was known to Prospective Franchisee prior to any disclosure by Del Taco;
- b. Is or shall become public information through no breach of this Agreement;
- c. Is received by Prospective Franchisee from a third party having no secrecy obligation to Del Taco with respect to such disclosed information; or
- d. Subsequently is developed, as evidenced by written documentation, by an employee, agent, or representative of Prospective Franchisee to whom Proprietary Information has not been divulged.
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- If Prospective Franchisee is requested or required to disclose Proprietary Information pursuant to a subpoena or an order of a court or governmental agency, it shall:
- a. Promptly notify Del Taco of the existence, terms and circumstances surrounding the governmental request or requirement;
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, the Non-Disclosure Agreement does not specify any financial thresholds related to the disclosure or use of Proprietary Information. The agreement focuses on maintaining the confidentiality of Del Taco's proprietary system and information.
The agreement outlines the prospective franchisee's obligations to keep the Proprietary Information confidential, disclose it only to those within their organization who need to know it, and prevent disclosure to third parties without Del Taco's written consent. It also states that the franchisee cannot use the information for any purpose other than what it was disclosed for. The agreement also states that Del Taco has no obligation to supply Proprietary Information.
Furthermore, the agreement details the steps a prospective franchisee must take if legally required to disclose Proprietary Information, including notifying Del Taco and cooperating to protect the confidentiality of the information. The agreement also specifies what kind of information is not covered, such as information already known to the franchisee or that becomes public knowledge without any breach of the agreement.
Overall, the Non-Disclosure Agreement emphasizes the importance of protecting Del Taco's confidential information and trade secrets, without setting any specific monetary limits or thresholds related to its disclosure or use.