What is a 'Technology Upgrade' according to the Del Taco franchise agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
orting 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.
- 5.16 Customer Data. 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. Franchisee may not sell, transfer, or use Customer Data for any purpose other than operating the Restaurant and marketing "Del Taco brand" products and services. However, if Franchisee Transfers the Restaurant (as provided in Section 12.3 below), as part of the Transfer, Franchisee must also Transfer use of the Customer Data to the buyer as part of the total purchase price paid for the Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a 'Technology Upgrade' encompasses the implementation, periodic upgrading, and other changes made to the Technology System and Required Software. These upgrades are implemented as Del Taco reasonably requests in writing. The franchisee bears the expense of these Technology Upgrades and must comply with Del Taco's written specifications, whether found in the manuals or elsewhere.
Del Taco retains the right to establish new technology standards and implement changes to the system to address evolving technological needs. Franchisees are obligated to abide by these new standards as if the franchise agreement were periodically revised to reflect them. This includes paying any fees, charges, or other amounts to Del Taco or third parties for these new technologies and related components. If any technology used by the franchisee does not meet Del Taco's specifications, the franchisee must immediately stop using it, and Del Taco has the right to remove it from the restaurant.
To ensure operational efficiency and communication, franchisees must maintain their Technology System and promptly install any additions, changes, modifications, substitutions, or replacements to their computer hardware, software, telephone and power lines, and other related facilities as directed by Del Taco in writing. These changes are implemented if Del Taco determines they will be economically or otherwise beneficial to all system franchisees. Del Taco also has the right to develop, designate, or have developed computer software programs, accounting system software, updates, supplements, modifications, or enhancements to the Required Software that the franchisee must install.