Is a Del Taco franchisee required to operate the Restaurant only at the approved location?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to operate the Restaurant only at the location we approve. You may not operate the Restaurant or offer or sell any products or services at or from any location other than the approved location identified in Exhibit A of the Franchise Agreement. We do not restrict you from soliciting or accepting food or beverage orders from consumers outside your Protected Area, including the internet, catalog sales, telemarketing, or direct marketing. However, we have the right to approve all advertising and marketing media and materials you wish to use. No restrictions exist that prevent us from soliciting or accepting orders from consumers inside your Protected Area in the same manner, and we will owe you no compensation if we do so. You may not relocate the Restaurant without our prior written consent. You must comply with our then-current site selection and construction standards.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees are required to operate their restaurant solely at the location approved by Del Taco. The approved location is identified in Exhibit A of the Franchise Agreement. Franchisees are prohibited from operating the restaurant or selling products or services from any other location without prior written consent from Del Taco, and any relocation of the restaurant requires the franchisor's approval and adherence to their site selection and construction standards.
While franchisees are restricted to the approved location, they are not restricted from soliciting or accepting orders from consumers outside their Protected Area, including online orders, catalog sales, telemarketing, or direct marketing. However, Del Taco retains the right to approve all advertising and marketing materials used by the franchisee. Del Taco also reserves the right to solicit or accept orders from consumers within the franchisee's Protected Area without owing any compensation to the franchisee.
This arrangement means that while Del Taco franchisees have a designated physical location for their restaurant, their market reach can extend beyond that location through various means, subject to Del Taco's approval of marketing efforts. However, Del Taco also retains the right to compete within the franchisee's protected area, which is a factor prospective franchisees should consider. The franchisee's protected area is a circular area within a one-mile radius from the front door of the Del Taco Restaurant, excluding Alternative Points of Distribution.