Does Del Taco require a Non-Disclosure Agreement as part of its franchising process?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
aco at Del Taco's home office shall be controlling.
- 9.4 Revisions to the Manuals. Del Taco may from time to time revise the contents of the Manuals, and Franchisee expressly agrees to make corresponding revisions to its copy of the Manuals and to comply with each new or changed standard immediately upon receipt of such revision.
10. Confidentiality and Covenants Not To Compete.
10.1 Confidential Information. Franchisee shall not, during the term of this Agreement or thereafter, communicate, divulge, or use for the benefit of any other person, persons, partnership, entity, association, or corporation any confidential information, trade secrets, knowledge, or know-how concerning the methods of operation of the business franchised hereunder which may be communicated to Franchisee or of which Franchisee may be apprised by virtue of Franchisee's operation under the terms of
this Agreement (the "Confidential Information"). Franchisee shall divulge such Confidential Information only to such of its employees as must have access to it in order to operate the Restaurant. Any and all information, knowledge, know-how, and techniques which Del Taco designates as confidential shall be deemed confidential for purposes of this Agreement, except information which Franchisee can demonstrate came to its attention prior to disclosure thereof by Del Taco; or which, at or after the time of disclosure by Del Taco to Franchisee, had become or later becomes a part of the public domain, through publication or communication by others. 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. Notwithstanding any other provision of this Agreement, there may be certain, limited circumstances where applicable law allows for the disclosure of certain trade secrets, as specified in the Manuals.
- 10.2 Irreparable Injury.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees are bound by confidentiality agreements. During the term of the Franchise Agreement and even after its termination, franchisees must not disclose or use any confidential information, trade secrets, knowledge, or know-how related to Del Taco's business operations for the benefit of any other party. This includes information communicated to the franchisee or learned through their operation under the Franchise Agreement.
Franchisees are allowed to share confidential information only with employees who need access to it for restaurant operations. Del Taco requires that these employees also sign confidentiality agreements, using a form provided by Del Taco. Del Taco is designated as a third-party beneficiary of these agreements, giving them the independent right to enforce them.
The FDD states that any failure to comply with these confidentiality requirements will cause irreparable injury to Del Taco. In such cases, the franchisee is responsible for covering all court costs and reasonable attorney's fees incurred by Del Taco in enforcing the confidentiality provisions through specific performance or injunctions.