Does Del Taco have the obligation to develop computer software programs for franchisees?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.15.2 Del Taco has the right, but not the obligation, to develop or have developed for it, or to designate, any or all of the following: (a) computer software programs and accounting system software that Franchisee must use in connection with the Technology System ("Required Software"), which Franchisee must install; (b) updates, supplements, modifications, or enhancements to the Required Software, which Franchisee must install; (c) the tangible media upon which such Franchisee must record or receive data; (d) the database file structure of Franchisee's Technology System; (e) an Extranet for
informational assistance, which may include the Manuals, training other assistance materials, and management reporting solutions; and (f) answering service requirements and/or system-wide phone order processing of all delivery orders, and/or to designate vendors that will provide such order processing.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco has the right, but not the obligation, to develop computer software programs for franchisees. Specifically, Del Taco can develop or have developed computer software programs and accounting system software that the franchisee must use in connection with the Technology System. Del Taco also has the option to create updates, supplements, modifications, or enhancements to the Required Software, which the franchisee would be required to install.
This means that as a Del Taco franchisee, you may be required to use specific software designated by Del Taco for your restaurant's operations. However, Del Taco is not obligated to create this software themselves. They can designate software developed by a third party. Franchisees are responsible for installing any Required Software and updates that Del Taco specifies.
Del Taco also has the right to designate the tangible media for data recording or receipt, the database file structure of the Technology System, an Extranet for informational assistance, and answering service requirements or system-wide phone order processing for delivery orders. They can also designate vendors to provide such order processing. This gives Del Taco significant control over the technology used within the franchise system, allowing them to standardize operations and potentially improve efficiency. However, it also means franchisees must be prepared to adapt to changes and updates in technology as directed by Del Taco.