factual

What right does Del Taco have regarding the specification or requirement of communications, computer systems, and hardware to be used by Del Taco Restaurants?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 4.8 Technology System. Del Taco shall have the right to specify or require that certain brands, types, makes, and/or models of communications, computer systems, kitchen display systems and hardware to be used by, between, or among Restaurants, including: back office and point of sale systems, computer hardware and software, dedicated high speed communications equipment and services, dedicated telephone and power lines, modem(s), printer(s), firewalls, mobile app-related equipment, digital menu boards, communications devices, audio/visual equipment, services, software and/or requirements (collectively, the "Technology System"). To ensure full operational efficiency and optimum communication capability between and among equipment and computer systems installed by Franchisee, Del Taco, and other franchisees, Franchisee agrees, at its expense, that Franchisee shall keep its Technology System in good maintenance and repair, and, at its expense, and following the determination that Del Taco shall have the right to make, to the effect that same will prove economically or otherwise beneficial to all System franchisees, that Franchisee shall promptly install such additions, changes, modifications, substitutions and/or replacement to Franchisee's computer hardware, software, telephone and power lines, and other related facilities, as Del Taco directs periodically in writing. Franchisee shall provide to Del Taco, upon Del Taco's request, all e mail lists and customer lists used or maintained by Franchisee on the Technology System or elsewhere.
  • 5.15.2 Del Taco has the right, but not the obligation, to develop or have developed for it, or to designate, any or all of the following: (a) computer software programs and accounting system software that Franchisee must use in connection with the Technology System ("Required Software"), which Franchisee must install; (b) updates, supplements, modifications, or enhancements to the Required Software, which Franchisee must install; (c) the tangible media upon which such Franchisee must record or receive data; (d) the database file structure of Franchisee's Technology System; (e) an Extranet for informational assistance, which may include the Manuals, training other assistance materials, and management reporting solutions; and (f) answering service requirements and/or system-wide phone order processing of all delivery orders, and/or to designate vendors that will provide such order processing.
  • 5.15.3 Franchisee agrees to install and use the Technology System and Required Software in the manner that Del Taco requires.
  • 5.15.4 Franchise agrees to implement and periodically upgrade and make other changes to the Technology System and Required Software as Del Taco may reasonably request in writing (collectively, "Technology Upgrades").
  • 5.15.5 Franchisee agrees to comply with Del Taco's written specifications (whether in the Manuals or otherwise) with respect to the Technology System and the Required Software, and with respect to Technology Upgrades, at Franchisee's own expense.
  • 5.15.6 Franchisee agrees to afford Del Taco unimpeded access to its Technology System and Required Software in the manner, form, and at the times that Del Taco requests.
  • 5.15.7 Because changes to technology are dynamic and not predictable within the term of this Agreement, and in order to provide for inevitable but unpredictable changes to technological needs and opportunities, Franchisee agrees: (a) that Del Taco will have the right to establish, in writing, reasonable new standards to address new technologies, whether published in the Manuals or otherwise in writing, and that Del Taco has the right to implement those changes in technology into the System; (b) to abide by Del Taco's reasonable new standards as if this Section 5.15, and other technology provisions in this Agreement, were periodically revised for that purpose, and (c) to pay any fees, charges, or other amounts to Del Taco or any third party for such new technologies 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. 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.
  • 5.19 POS or Cash Register Systems. Franchisee agrees to record all sales on computer-based point of sale systems or such other types of cash register systems that Del Taco has the right to designate or approve in the Manual or otherwise in writing ("POS System"). The POS System is deemed to be part of Franchisee's Technology System. Franchisee must utilize computer-based point-of-sale devices that are fully compatible with any program or system that Del Taco has the right to designate, and Franchisee must record all Net Sales and all revenue information on such equipment.
  • 5.20 Gift Cards. If Del Taco requires, Franchisee agrees to participate in the gift card program(s) that Del Taco specifies. For this purpose, Franchisee must purchase the software, hardware, blank cards, and other items needed to sell and process gift cards or stored value cards, which Del Taco may specify in the Manuals or otherwise in writing. Franchisee also agrees to pay such monthly and perswipe transaction fees as may be required by the vendor of the gift card system. Franchisee must sell or honor gift cards only in accordance with Del Taco's written standards.

Source: Item 22 — CONTRACTS (FDD pages 58–59)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, Del Taco has extensive rights to specify the technology systems used in its restaurants. Del Taco can mandate the brands, types, makes, and models of communications, computer systems, kitchen display systems, and hardware used by franchisees. This includes back office and point of sale systems, computer hardware and software, high-speed communications equipment, telephone and power lines, modems, printers, firewalls, mobile app-related equipment, digital menu boards, communications devices, audio/visual equipment, services, and software. These items are collectively referred to as the "Technology System."

Del Taco's rights extend to requiring franchisees to keep their Technology Systems in good repair and to install additions, changes, modifications, substitutions, or replacements to their computer hardware, software, telephone and power lines, and other related facilities. These changes will be at the franchisee's expense, provided Del Taco determines that such changes will benefit all franchisees in the system. Franchisees must also provide Del Taco with all email and customer lists used or maintained on the Technology System or elsewhere, upon request.

Del Taco also has the right, but not the obligation, to develop or designate computer software programs and accounting system software that franchisees must use, including updates, supplements, modifications, or enhancements. Franchisees must install and use the Technology System and Required Software as Del Taco requires and implement Technology Upgrades as reasonably requested in writing by Del Taco. Franchisees must comply with Del Taco's written specifications for the Technology System, Required Software, and Technology Upgrades at their own expense and afford Del Taco unimpeded access to their Technology System and Required Software. Del Taco can establish new technology standards in writing to address new technologies and implement those changes into the system, with franchisees responsible for any associated fees or charges. If any technology used by a franchisee does not meet Del Taco's specifications, the franchisee must cease using it, and Del Taco has the right to remove it from the Restaurant.

All data collected from customers is owned exclusively by Del Taco, and franchisees must provide or delete Customer Data at Del Taco's request. Franchisees can use Customer Data while the Franchise Agreement is in effect, but only in connection with operating the Restaurant and according to Del Taco's policies. Franchisees must record all sales on computer-based point of sale systems or other cash register systems that Del Taco designates or approves. The POS System is considered part of the Technology System, and franchisees must use compatible point-of-sale devices and record all Net Sales and revenue information on such equipment. If Del Taco requires participation in a gift card program, franchisees must purchase the necessary software, hardware, and cards, and pay any required monthly and per-swipe transaction fees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.