Does Del Taco provide a specific form for the employee confidentiality covenant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Any employee who may have access to any Confidential Information regarding the Restaurant shall execute a covenant that s/he will maintain the confidentiality of information they receive in connection with their association with Franchisee. Such covenants shall be on a form provided by Del Taco, which form shall, among other things, designate Del Taco as a third party beneficiary of such covenants with the independent right to enforce them.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, any employee who may access confidential information regarding the restaurant must sign a confidentiality covenant. Del Taco specifies that this covenant must be on a form provided by Del Taco.
This form designates Del Taco as a third-party beneficiary, granting them the independent right to enforce the covenant. This means Del Taco can directly take legal action against an employee who violates the confidentiality agreement, even though the employee works for the franchisee.
This requirement ensures that Del Taco maintains control over its confidential information and trade secrets, even at the employee level within a franchised location. It also provides an extra layer of protection for Del Taco, as they don't have to rely solely on the franchisee to enforce these agreements. Prospective franchisees should obtain a sample of this form during their due diligence to fully understand its scope and implications.