What is excluded from the Protected Area calculation for a Del Taco restaurant?

According to Del Taco's 2025 Franchise Disclosure Document, the Protected Area granted to a franchisee is a circular area within a one-mile radius from the front door of their Del Taco restaurant. However, this Protected Area excludes Alternative Points of Distribution, as described in the Franchise Agreement. This means that while Del Taco grants a certain level of territorial protection, it is not absolute, and other distribution channels can operate within that one-mile radius.

This exclusion of Alternative Points of Distribution from the Protected Area has significant implications for a prospective Del Taco franchisee. It means that Del Taco could potentially authorize other non-traditional locations or distribution methods within the franchisee's territory, increasing competition. The FDD does not define "Alternative Points of Distribution," so it is important for a potential franchisee to understand what these might include. This could encompass mobile units, kiosks, or other smaller-format locations that could draw customers away from the traditional brick-and-mortar Del Taco restaurant.

It is also important to note that Del Taco retains the right to solicit and accept orders from consumers inside the Protected Area through methods like the internet, catalog sales, telemarketing, or direct marketing, without owing any compensation to the franchisee. This further limits the exclusivity of the Protected Area and highlights the importance of a franchisee's own marketing efforts to compete effectively within their territory. A prospective franchisee should seek clarification from Del Taco regarding the scope and potential impact of these Alternative Points of Distribution and the company's direct marketing activities within the Protected Area.