Is Del Taco obligated to take action against infringement of its marks?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement requires that we protect any or all rights that you have to use our principal Marks and to protect you against claims of infringement or unfair competition with respect to the same. You must inform us promptly in writing of any infringement of the Marks by another party and of any litigation instituted against Del Taco relating to the Marks. We have the right, but not the obligation, to take action as we deem advisable to prevent any infringement and to join you as a party, if necessary. You must assist us, as our counsel decides appropriate, in protecting our interest in the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 40–41)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco is not obligated to take action against infringement of its marks. While the Franchise Agreement mandates that Del Taco must protect a franchisee's right to use their principal marks and defend against infringement claims, the document specifies that Del Taco has the right, but not the obligation, to act against infringements as it deems advisable. This means that while Del Taco can choose to take legal action against parties infringing on its trademarks, it is not legally bound to do so.
For a prospective Del Taco franchisee, this has important implications. While Del Taco is required to protect the franchisee's right to use the marks, the ultimate decision to pursue legal action against infringers lies at Del Taco's discretion. The franchisee is responsible for promptly informing Del Taco in writing of any infringement. Additionally, the franchisee must assist Del Taco in protecting its interest in the marks, as deemed appropriate by Del Taco's counsel.
Furthermore, Del Taco retains the right to modify or discontinue any name or mark without compensating the franchisee for associated costs. Del Taco also does not have to indemnify franchisees against damages suffered in proceedings arising from the use of any name or mark. This highlights the importance of franchisees understanding the scope of trademark protection and the potential costs associated with trademark-related issues.