After termination or expiration of the Del Taco agreement, can the franchisee represent themselves as a former Del Taco franchisee?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall immediately cease to operate the Restaurant, and shall not thereafter, directly or indirectly, represent to the public or hold Franchisee out as a present or former franchisee of Del Taco.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, a franchisee is prohibited from representing themselves as a current or former Del Taco franchisee after the termination or expiration of their franchise agreement. Specifically, the franchisee must immediately cease operating the restaurant and cannot directly or indirectly present themselves to the public as a present or former Del Taco franchisee. This restriction is part of the obligations that a franchisee agrees to upon termination or expiration of the franchise agreement.
This provision ensures that franchisees do not mislead the public into thinking they are still affiliated with the Del Taco brand after their agreement ends. It protects Del Taco's brand integrity and prevents potential confusion among customers. The franchisee must also stop using any confidential methods, procedures, and techniques associated with the Del Taco system, including the "Del Taco" mark and all other proprietary marks.
In practical terms, this means that a former franchisee cannot use any signage, advertising materials, or other items that display Del Taco's proprietary marks. They must remove all such articles or allow Del Taco to remove or cover them at the franchisee's expense. Additionally, the franchisee must cancel any assumed name registrations that include the "Del Taco" name or any other proprietary marks and provide Del Taco with evidence of compliance within five days after termination or expiration. These measures are designed to completely sever the franchisee's association with the Del Taco brand following the end of the franchise agreement.