Under what conditions can Del Taco establish new technology standards for its franchisees?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco has the right to establish new technology standards for its franchisees in writing to address new technologies. These new standards can be published in the Manuals or otherwise provided in writing. Del Taco has the right to implement those changes in technology into its system.
As a Del Taco franchisee, you are obligated to abide by Del Taco's reasonable new technology standards as if the franchise agreement were periodically revised for that purpose. This includes paying any fees, charges, or other amounts to Del Taco or any third party for such new technologies and related components. If any technology you use in connection with the restaurant does not meet Del Taco's specifications or standards, you must immediately stop using it, and Del Taco has the right to remove said technology from the restaurant.
This clause gives Del Taco significant control over the technology used in its franchise locations, ensuring uniformity and compatibility across the system. While franchisees bear the cost of these technology upgrades and changes, the FDD stipulates that these standards must be 'reasonable'. A prospective franchisee should clarify what recourse they have if they believe a technology standard is unreasonable or unduly burdensome. It is also important to understand the typical frequency and cost of technology upgrades to budget accordingly.