Who owns the Customer Data collected by a Del Taco franchisee?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
ologies and related components. Upon notification that any technology Franchisee is using in connection with the Restaurant does not meet Del Taco's specifications or standards, Franchisee shall immediately cease and desist from using same and Del Taco shall have the right to remove said technology from the Restaurant.
- 5.16 Customer Data. Franchisee agrees that all data that it collects from customers and potential customers in connection with the Franchised Business ("Customer Data") is deemed to be owned exclusively by Del Taco, and Franchisee also agrees to provide the Customer Data to Del Taco or delete Customer Data at any time that Del Taco requests. Franchisee has the right to use Customer Data while this Agreement or a successor or renewal Franchise Agreement is in effect, but only in connection with operating the Restaurant and only in accordance with the policies that Del Taco establishes from time to time. Franchisee may not sell, transfer, or use Customer Data for any purpose other than operating the Restaurant and marketing "Del Taco brand" products and services. However, if Franchisee Transfers the Restaurant (as provided in Section 12.3 below), as part of the Transfer, Franchisee must also Transfer use of the Customer Data to the buyer as part of the total purchase price paid for the Restaurant. Franchisee must secure from its vendors, customers, prospective customers, and others all consents and authorizations, and provide them all disclosures, that applicable law requires to transmit the Customer Data to Del Taco and its affiliates and for Del Taco and its affiliates to use that Customer Data in the manner that this Agreement contemplates.
- 5.17 Processing of Personal Information. Franchisee agrees that may collect, receive, or otherwise process Personal Information, as a result of agreements between Franchisee and Del Taco (or its subsidiaries or affiliates), including this Agreement. Franchisee agrees to abide by this section 5.17 with regard to such Personal Information.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco exclusively owns all data collected from customers and potential customers by a franchisee in connection with the franchised business. This includes what Del Taco defines as "Customer Data". The franchisee agrees to provide this Customer Data to Del Taco or delete it at any time Del Taco requests.
While the franchise agreement is in effect, the franchisee has the right to use the Customer Data, but only to operate the restaurant and in accordance with Del Taco's policies. The franchisee is not allowed to sell, transfer, or use the Customer Data for any purpose other than operating the restaurant and marketing "Del Taco brand" products and services.
Del Taco also states that all data provided by the franchisee in any form, including data uploaded to Del Taco's computer system from the franchisee's technology system, is exclusively owned by Del Taco. This includes Customer Data, customer lists, and email lists. Del Taco has the right to use this data in any manner it deems appropriate without compensating the franchisee. Del Taco licenses the use of such data back to the franchisee, at no additional cost, solely for the term of the agreement and solely for the franchisee's use in connection with the franchised business.
Furthermore, Del Taco considers itself the sole owner and controller of Personal Information that a franchisee may collect, receive, or process as a result of any agreements between the franchisee and Del Taco. The franchisee acts as a service provider or processor for such information. This means that Del Taco sets the standards and policies pertaining to privacy laws, and the franchisee must comply with these standards. If there is a conflict between Del Taco's standards and applicable law, the franchisee must comply with the law, notify Del Taco, and cooperate with Del Taco to find a way to meet its standards within the bounds of the law.