Does the Del Taco Development Agreement specify any geographic limits on where the franchisee can develop restaurants?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
yrights designated by Del Taco for use with the Del Taco System for use with the same, similar or different franchise systems for the sale of the same, similar or different products or services as those used in connection with the Del Taco System at any
location outside the Development Area on any terms and conditions Del Taco may deem advisable and without granting the Developer any rights in them.
(c) The right to develop, construct, operate, merchandise, sell, license and/or franchise others to sell Del Taco foods and other products to the public within the Development Area, including the immediate area surrounding any Del Taco restaurant location submitted by Developer to Del Taco for approval, or any Del Taco restaurant established by Developer, irrespective of any boundaries otherwise referenced in this Agreement through restaurant outlets (whether mobile or fixed, permanent or temporary) located on military bases, institutional outlets (including, without limitation, college campuses, hospitals and school lunch programs), fairs, athletic contests or other special events, casinos, airports and larger retail outlets, including (without limitation) 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 stations, bus stations or transportation facilities, and other locations owned or operated by major institutions with sites throughout the country or a particular state (collectively, referred to as "Alternative Points of Distribution") and to use the Del Taco System in connection with those Alternative Points of Distribution.
Del Taco shall notify Developer in writing of Del Taco's or another franchisee's intent to develop one or more Del Taco restaurants at the specific Alternative Point of Distribution within the Development Area. If Developer can demonstrate to Del Taco's satisfaction, within 30 days of Developer's receipt of such notification, that Developer has the ability to enter into an agreement under the same terms and conditions offered to Del Taco or another franchisee, as well as the financial and operational resources available to it for the development of the Del Taco restaurant at the specific Alternative Point of Distribution, then Del Taco shall offer the opportunity to Developer under the same terms and conditions offered to Del Taco or another franchisee.
- (d) After the expiration or earlier termination of this Agreement, to continue to construct and operate other Restaurants and to use the Del Taco System at any location within the Development Area and to license others to do the same.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, the Development Agreement grants the developer limited exclusive rights to develop restaurants within a specific Development Area. Del Taco will not establish or grant franchises to others within this area during the agreement's term, provided the developer adheres to the agreement's terms and conditions. The developer is required to submit Site Approval Packages and meet the development schedule outlined in the agreement.
Del Taco retains the right to develop Del Taco restaurants or franchise others to develop restaurants at Alternative Points of Distribution within the Development Area. These locations include military bases, college campuses, hospitals, fairs, casinos, airports, and larger retail outlets like Wal-Mart and Home Depot. Del Taco must notify the developer of their intent to develop a restaurant at a specific Alternative Point of Distribution.
If the developer can demonstrate within 30 days that they can meet the same terms and conditions offered to Del Taco or another franchisee and have the necessary financial and operational resources, Del Taco must offer the opportunity to the developer. Del Taco also has the right to refuse approval of a site within one mile of a Del Taco restaurant located or proposed outside the Development Area if it determines the proposed site will negatively impact the other restaurant.