What parties are allowed to receive Del Taco's Proprietary Information from a Prospective Franchisee?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a prospective franchisee may disclose Proprietary Information only to specific individuals under certain conditions. These individuals include the prospective franchisee's employees, agents, and consultants. However, this disclosure is limited to those who need to know the Proprietary Information for a specific purpose, have been informed of its confidential nature, and are obligated to maintain its confidentiality.
Importantly, the prospective franchisee is prohibited from disclosing Del Taco's Proprietary Information to any other third party without obtaining prior written consent from Del Taco. This restriction ensures that sensitive business information remains protected and is not disseminated without the franchisor's explicit approval. The agreement also stipulates that the prospective franchisee cannot use the Proprietary Information for any purpose other than what it was originally disclosed for.
This clause is a standard practice in franchising to protect the franchisor's business methods, trade secrets, and other confidential information. For a prospective Del Taco franchisee, this means they must exercise caution and implement strict controls over who has access to the Proprietary Information during their evaluation of the franchise opportunity. Failure to comply with these confidentiality obligations could result in legal repercussions and damage the relationship with Del Taco.