After termination or expiration of the Del Taco Franchise Agreement, is a franchisee allowed to 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.
- 14.1.2 Cease Use of Proprietary Marks.
Franchisee shall immediately and permanently cease to use, in any manner whatsoever, any confidential methods, procedures and techniques associated with the System, the mark "Del Taco" and all other Proprietary Marks and distinctive forms, slogans, signs, symbols, and devices associated with the System.
In particular, Franchisee shall cease to use all signs, advertising materials, displays, stationery, forms, and any other articles that display the Proprietary Marks, remove all such articles and/or permit Del Taco to enter the Restaurant and remove or permanently cover all signs or advertisements identifiable in any way with Del Taco's name or business, at Franchisee's expense.
- 14.1.3 Cancellation of Assumed Names.
Franchisee shall take such action as may be necessary to cancel any assumed name or equivalent registration which contains the Proprietary Mark "Del Taco" and all other Proprietary Marks, and/or any other service mark or trademark, and Franchisee shall furnish Del Taco with evidence satisfactory to Del Taco of compliance with this obligation within five (5) days after termination or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee is explicitly prohibited from representing themselves as a current or former Del Taco franchisee. Specifically, the franchisee must immediately cease operating the restaurant and cannot directly or indirectly present themselves to the public as associated with Del Taco. This restriction is a standard practice in franchising to protect the brand's reputation and prevent potential confusion among customers.
In addition to ceasing operations and representation, the franchisee must also discontinue all use of Del Taco's proprietary marks, confidential methods, procedures, and techniques. This includes removing all signs, advertising materials, displays, and stationery that display the proprietary marks. The franchisee is responsible for either removing these items or allowing Del Taco to enter the restaurant to remove or cover any signs or advertisements identifiable with Del Taco's name or business, all at the franchisee's expense.
Furthermore, the franchisee is obligated to cancel any assumed name registrations that contain the "Del Taco" name or any other proprietary marks. Evidence of compliance with this cancellation must be furnished to Del Taco within five days after the termination or expiration of the agreement. These measures ensure a clean break between the franchisee and the Del Taco brand, preventing any potential misuse of the brand's identity or intellectual property after the franchise agreement ends.