Can Del Taco establish, operate, and license others to establish and operate, any co-branded or multi-branded restaurant or food-related business, within or outside the Development Area, which uses Del Taco's trademarks and the trademark(s) of one or more other related or unrelated brands and which may offer or sell same or similar menu items as Del Taco restaurants?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Establish, operate, and license others to establish and operate, any co-branded or multi-branded restaurant or food-related business, within or outside the Development Area, which uses the Del Taco's trademarks and the trademark(s) of one or more other related or unrelated brands and which may offer or sell same or similar menu items as Del Taco restaurants.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco retains the right to establish, operate, and license others to establish and operate co-branded or multi-branded restaurants or food-related businesses. These ventures can be located either within or outside a franchisee's Development Area.
These co-branded or multi-branded businesses may use Del Taco's trademarks in conjunction with the trademarks of other related or unrelated brands. Furthermore, they are permitted to offer and sell menu items that are the same as or similar to those found in traditional Del Taco restaurants.
This provision clarifies that Del Taco maintains control over its brand and can pursue alternative business models, such as co-branding, without being restricted by individual franchise agreements or development areas. For a potential franchisee, this means that Del Taco could partner with other brands, potentially even competitors, which could impact the franchisee's market and sales.