Under what circumstances can Del Taco substitute different proprietary marks for use in identifying the System, and who bears the expense of implementing these substituted marks?

According to Del Taco's 2025 Franchise Disclosure Document, Del Taco reserves the right to substitute different proprietary marks for identifying the Del Taco system and its businesses under two specific conditions. First, if the current proprietary marks can no longer be legally used. Second, if Del Taco determines, in its own judgment, that substituting different proprietary marks would benefit the overall Del Taco system.

If Del Taco decides to implement such a substitution, the franchisee is responsible for the expenses associated with implementing the new proprietary marks. This includes any changes to signage, marketing materials, or other items that display the brand's identity. The franchisee must implement these changes as directed by Del Taco, and the use of the substituted marks will then be governed by the terms of the franchise agreement.

This clause highlights a potential financial burden for franchisees. If a re-branding occurs, franchisees must bear the costs of updating their restaurants and materials to reflect the new brand. Prospective franchisees should consider this potential expense and factor it into their financial planning. It is also important to note that Del Taco has the sole discretion to determine if a substitution is beneficial, which could leave franchisees with little control over a potentially costly change.