What are considered 'Alternative Points of Distribution' for Del Taco, which may exist within the Protected Area?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
, and services to the public within the Protected Area, as may be revised in accordance with Section 1.2.5 hereof. "Alternative Point(s) of Distribution" shall mean any outlet described in Section 1.2.2 of this Agreement. Del Taco retains all other rights not expressly granted in this Agreement. Without obligation to Franchisee, Del Taco and its affiliates may, among other things, and regardless of proximity to or economic impact upon the Restaurant:
- 1.2.1 Advertise and promote the System within and outside of the Protected Area;
- 1.2.2 Sell or authorize others to sell Menu Items, products, and services to the public within the Protected Area through Alternative Points of Distribution, which include outlets (whether mobile or fixed, permanent or temporary) located on military bases, institutional outlets (including college campuses, hospitals and school lunch programs), fairs, athletic contests or other special events, casinos, airports and larger retail outlets, including Wal-Mart and Home Depot, toll roads, limited access highways, schools, universities, enclosed shopping malls, hotels, industrial or government facilities, amusement or theme park complexes, train
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Alternative Points of Distribution are locations where Del Taco can sell menu items, products, and services within a franchisee's protected area. These alternative points can impact a franchisee's business.
The 2025 FDD specifies that these Alternative Points of Distribution include outlets located on military bases, institutional outlets such as college campuses, hospitals, and school lunch programs. They also include temporary locations at fairs, athletic contests, and other special events, as well as permanent locations within casinos, airports, and larger retail outlets like Wal-Mart and Home Depot. Other locations include toll roads, limited access highways, schools, universities, enclosed shopping malls, hotels, industrial or government facilities, amusement or theme park complexes, train stations, bus stations, and other transportation facilities. These can also be any other locations owned or operated by major institutions with sites throughout the country or a particular state.
For a prospective Del Taco franchisee, this means that while they are granted a protected area, Del Taco retains the right to operate or franchise other outlets through these Alternative Points of Distribution within that area. This could lead to internal competition within the franchisee's territory, potentially affecting their revenue. It is important for a prospective franchisee to understand the potential impact of these alternative distribution points on their investment and to evaluate the market conditions carefully before signing the franchise agreement.