What is Del Taco's process for a licensee to add additional restaurants to the Software and Documentation License Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
s and price updates on the Licensee's personal computer on a periodic basis, as reasonably requested by the Licensee. Del Taco shall not provide any Additional Services with respect to alternate concepts or products not a part of the standard Del Taco Restaurant system unless approved in writing by Del Taco.
FEES
License Fee. Within five days after the opening date of each Licensed Restaurant, Licensee shall pay a one-time fee to Del Taco in the amount set forth on Exhibit A for each License to acquire the Software and Documentation for each Licensed Restaurant. If Licensee desires to acquire Licenses for additional Licensed Restaurant(s), the parties shall insert additional appendices to incorporate the additional Licensed
Restaurant(s) and Licensee shall then pay a License Fee to Del Taco for each additional License. Del Taco may, upon 30 days' prior written notice to Licensee, increase the License Fee.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, if a licensee wants to acquire licenses for additional restaurants, both parties must add appendices to the Software and Documentation License Agreement to incorporate the additional restaurants. The licensee must then pay Del Taco a license fee for each additional license. Del Taco can increase the license fee with 30 days' prior written notice to the licensee.
Del Taco requires that licensees use the Software and Documentation in each of their franchised Del Taco Restaurants, which are referred to as "Licensed Restaurants" and are listed on appendices to the agreement. Del Taco's consent is required to add additional restaurants to the Software and Documentation License Agreement by adding more appendices. Each additional restaurant will be designated by a letter that follows the previous appendix and will be dated as of the date that Del Taco grants its approval, which is referred to as the "Approval Date".
This process ensures that Del Taco maintains control over the use of its software and documentation, and that licensees properly license and pay for the software for each restaurant they operate. It also allows Del Taco to update the fees associated with the software licenses, providing flexibility for the franchisor. Prospective franchisees should be aware of these requirements and factor in the costs of software licenses when planning to expand their Del Taco operations.