Does the Del Taco Non-Disclosure and Non-Competition Agreement mention anything about the Franchisee?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
ESS WHEREOF, the Company and Franchisee have caused this Agreement to be executed as of the Effective Date by their authorized representatives.
Del Taco LLC
| By: | |
|---|---|
| Jack Tang, Vice President, General Counsel | |
| Dated: | |
| [Franchisee] | |
| By: | |
| Name: | |
| Its: | |
| Dated: |
EXHIBIT A TO AGREEMENT TO PARTICIPATE IN THE CERIDIAN PLATFORM
| The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of | | |---|---| | January 19, 2025 (in thousands): | | | Remainder of 2025 | $3,676 |
EXHIBIT L
NON-DISCLOSURE AGREEMENT
DEL TACO NON-DISCLOSURE AGREEMENT
| THIS NON-DISCLOSURE AGREEMENT ("Agreement") is made and entered into on the | _day of | |----------------------------------------------------------------------------------------------------|---------------| | , 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.
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 mention the franchisee. Specifically, the agreement outlines the obligations and restrictions placed upon the 'Prospective Franchisee' regarding confidential information. The agreement states that the Prospective Franchisee must keep confidential any proprietary information disclosed to them, whether orally or in writing. This obligation extends to the franchisee's employees, agents, and consultants who also need to maintain confidentiality. The franchisee is prohibited from disclosing proprietary information to any third party without Del Taco's prior written consent and from using such information for any purpose other than what it was disclosed for.
Furthermore, the Del Taco Non-Disclosure Agreement addresses scenarios where the Prospective Franchisee is legally compelled to disclose proprietary information. In such cases, the franchisee must promptly notify Del Taco, consult on how to respond to the request, cooperate with Del Taco to seek confidential treatment for the information, and only disclose the minimum amount of information legally required. This clause protects Del Taco's confidential information while ensuring the franchisee complies with legal obligations.
In addition to confidentiality, the Del Taco agreement also includes covenants not to compete. It acknowledges that individuals associated with the franchisee, such as employees or those with an ownership interest, will receive specialized training and confidential information about Del Taco's operational, sales, promotional, and marketing methods. These individuals, referred to as 'Obligee,' are restricted from engaging in competitive activities during their association with the franchisee, ensuring they do not use Del Taco's confidential information to benefit a competing business. This non-compete provision is crucial for protecting Del Taco's market position and proprietary systems.