Under what circumstances can a Del Taco franchisee use Customer Data?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
ologies 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. Franchisee must secure from its vendors, customers, prospective customers, and others all consents and authorizations, and provide them all disclosures, that applicable law requires to transmit the Customer Data to Del Taco and its affiliates and for Del Taco and its affiliates to use that Customer Data in the manner that this Agreement contemplates.
- 5.17 Processing of Personal Information. Franchisee agrees that may collect, receive, or otherwise process Personal Information, as a result of agreements between Franchisee and Del Taco (or its subsidiaries or affiliates), including this Agreement. Franchisee agrees to abide by this section 5.17 with regard to such Personal Information.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee has the right to use Customer Data while the Franchise Agreement is in effect, or during any successor or renewal Franchise Agreement. However, this use is explicitly limited to operating the Del Taco restaurant and must align with the policies established by Del Taco.
The franchisee is prohibited from selling, transferring, or using Customer Data for any purpose other than operating the restaurant and marketing "Del Taco brand" products and services. If the franchisee transfers the restaurant, the use of Customer Data must also be transferred to the buyer as part of the purchase.
Del Taco maintains ownership of all data collected from customers and potential customers in connection with the franchised business. The franchisee must provide or delete Customer Data at Del Taco's request. Del Taco also owns all data provided by the franchisee, including Customer Data, customer lists, and email lists, and has the right to use such data in any manner it deems appropriate without compensating the franchisee. Del Taco licenses the use of such data back to the franchisee, at no additional cost, solely for the term of the Franchise Agreement and for use in connection with the franchised business.