What steps is a Del Taco licensee required to take to safeguard Confidential Information?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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Tax. Licensee shall be responsible for any applicable sales or use taxes or any value added or similar taxes payable with respect to the licensing of the Software, or arising out of or in connection with this Agreement, other than taxes levied or imposed based upon Del Taco's income. In the event that Del
Taco pays any such taxes on behalf of Licensee, Del Taco shall invoice Licensee for such taxes and Licensee agrees to pay such taxes within 30 days from the date of receipt of the invoice.
CONFIDENTIAL INFORMATION AND INTELLECTUAL PROPERTY RIGHTS
Confidential Information. Licensee agrees that it shall not, without Del Taco's prior written consent: (i) modify any Confidential Information; (ii) reverse engineer, decompile, decrypt, or disassemble the Confidential Information or attempt to do so; (iii) transfer, rent, lease, lend or sublicense any Confidential Information to anyone for any purpose; or (iv) reveal or disclose any Confidential Information for any purpose to any other person, firm, corporation or other entity, other than Licensee's employees with a need to know such Confidential Information to perform employment responsibilities consistent with Licensee's rights under this Agreement. Licensee shall safeguard and protect the Confidential Information from theft, piracy or unauthorized access in a manner at least consistent with the protections Licensee uses to protect its own most confidential information. Licensee shall inform its employees of their obligations under this Agreement and shall take such steps as may be reasonable in the circumstances, or as may be reasonably requested by Del Taco, to prevent any unauthorized disclosure, copying or use of the Confidential Information.
Unauthorized Disclosure. Licensee shall notify Del Taco immediately upon discovery of any prohibited use or disclosure of the Confidential Information, or any other breach of these confidentiality obligations by Licensee, and shall fully cooperate with Del Taco to help Del Taco regain possession of the Confidential Information and prevent the further prohibited use or disclosure of the Confidential Information.
Intellectual Property Rights. Licensee acknowledges and agrees that the copyright, patent, trade secret, and all other intellectual property rights of whatever nature in the Software and Documentation are and shall remain the property of Del Taco, and nothing in this Agreement should be construed as transferring any aspects of such rights to Licensee or any third party. Intellectual Property Rights include all forms of intellectual property rights and protections, including, without limitation, all right, title and interest in and to all: (i) Letters Patent, and all filed, pending or potential applications for Letters Patent, including any reissue, reexamination, division, continuation or continuation in-part applications, throughout the world now or hereafter issued;
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, licensees must protect the brand's confidential information. Licensees cannot modify, reverse engineer, decompile, decrypt, disassemble, transfer, rent, lease, lend, sublicense, reveal, or disclose any confidential information without Del Taco's written consent. The only exception is for employees who need the information to perform their job duties in line with the licensee's agreement. Licensees must protect confidential information from theft, piracy, or unauthorized access at least as well as they protect their own confidential data.
Del Taco licensees must inform their employees about their confidentiality obligations under the franchise agreement. They must also take reasonable steps to prevent unauthorized disclosure, copying, or use of confidential information, including actions that Del Taco may reasonably request. If a licensee discovers any prohibited use or disclosure of confidential information, or any other breach of confidentiality, they must immediately notify Del Taco and fully cooperate to help Del Taco regain possession of the information and prevent further unauthorized use or disclosure.
Furthermore, Del Taco requires that each person actively involved in the management or operation of the business or restaurant enter into a confidentiality agreement. Licensees must also prevent anyone from using the Del Taco System in connection with any restaurant operation that isn't part of the Del Taco franchise, especially those offering Mexican food that imitates or competes with Del Taco. If a licensee believes that someone has violated the confidentiality agreement, they must notify Del Taco and cooperate in protecting the Del Taco System, including participating in lawsuits if Del Taco deems it necessary.