Does the Del Taco franchise agreement include an exhibit for a Non-Disclosure and Non-Competition Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
10.1 Confidential Information. Franchisee shall not, during the term of this Agreement or thereafter, communicate, divulge, or use for the benefit of any other person, persons, partnership, entity, association, or corporation any confidential information, trade secrets, knowledge, or know-how concerning the methods of operation of the business franchised hereunder which may be communicated to Franchisee or of which Franchisee may be apprised by virtue of Franchisee's operation under the terms of
this Agreement (the "Confidential Information"). Franchisee shall divulge such Confidential Information only to such of its employees as must have access to it in order to operate the Restaurant. Any and all information, knowledge, know-how, and techniques which Del Taco designates as confidential shall be deemed confidential for purposes of this Agreement, except information which Franchisee can demonstrate came to its attention prior to disclosure thereof by Del Taco; or which, at or after the time of disclosure by Del Taco to Franchisee, had become or later becomes a part of the public domain, through publication or communication by others. Any employee who may have access to any Confidential Information regarding the Restaurant shall execute a covenant that s/he will maintain the confidentiality of information they receive in connection with their association with Franchisee. Such covenants shall be on a form provided by Del Taco, which form shall, among other things, designate Del Taco as a third party beneficiary of such covenants with the independent right to enforce them. Notwithstanding any other provision of this Agreement, there may be certain, limited circumstances where applicable law allows for the disclosure of certain trade secrets, as specified in the Manuals.
- 10.2 Irreparable Injury.
Franchisee acknowledges that any failure to comply with the requirements of this Section 10 will cause Del Taco irreparable injury, and Franchisee agrees to pay all court costs and reasonable attorney's fees incurred by Del Taco in obtaining specific performance of, or an injunction against violation of, the requirements of this Section 10.
- 10.3 Information Exchange.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, the franchise agreement itself contains provisions for confidentiality and covenants not to compete. Section 10.1 states that the franchisee must not disclose confidential information or trade secrets during or after the term of the agreement. This includes any knowledge concerning the methods of operation of the franchised business. The franchisee can only share confidential information with employees who need access to it to operate the restaurant.
Del Taco also requires that any employee with access to confidential information sign a covenant to maintain confidentiality, with Del Taco designated as a third-party beneficiary with the right to enforce these covenants. Section 10.2 acknowledges that failure to comply with these confidentiality requirements will cause irreparable injury to Del Taco, and the franchisee will be responsible for all court costs and reasonable attorney's fees incurred by Del Taco in enforcing these provisions.
While the franchise agreement outlines these confidentiality and non-compete obligations, it also mentions several exhibits. Specifically, Exhibit D identifies the owners and their interests in the franchisee's business entity. However, the excerpts do not explicitly state that a separate exhibit is dedicated solely to a Non-Disclosure and Non-Competition Agreement. It is important to note that Section 10, which covers confidentiality and covenants not to compete, is part of the main body of the franchise agreement itself.