Upon termination or expiration of the Del Taco Franchise Agreement, what must the franchisee immediately cease doing?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
14.1 Upon termination or expiration of this Agreement, all rights granted hereunder to Franchisee shall forthwith terminate, and:
14.1.1 Cease Operations.
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, the franchisee must immediately cease certain activities. Specifically, the franchisee must cease operating the Del Taco restaurant. Furthermore, the franchisee is prohibited from representing themselves to the public, directly or indirectly, as a current or former Del Taco franchisee.
In addition to ceasing operations, the franchisee must immediately and permanently stop using any confidential methods, procedures, and techniques associated with the Del Taco system. This includes discontinuing the use of the "Del Taco" mark and all other proprietary marks, distinctive forms, slogans, signs, symbols, and devices associated with the system. The franchisee is required to stop using all signs, advertising materials, displays, stationery, forms, and any other articles that display the proprietary marks.
The franchisee is also obligated to remove all such articles and/or allow Del Taco to enter the restaurant to remove or permanently cover all signs or advertisements identifiable with Del Taco's name or business, all at the franchisee's expense. Moreover, the franchisee must take necessary actions to cancel any assumed name or equivalent registration containing the proprietary mark "Del Taco" and other proprietary marks, providing Del Taco with satisfactory evidence of compliance within five days of termination or expiration.