Does the Del Taco Non-Disclosure and Non-Competition Agreement mention anything about the expenditure of time, skill, effort, and money?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Del Taco, as the result of the expenditure of significant time, skill, effort and money, has developed a distinctive and proprietary system (the "Del Taco System" or "System") for establishing and operating restaurant businesses, which specialize in the sale of Mexican-American foods such as tacos and burritos, along with burgers, shakes and desserts, French fries, breakfast items, soft drinks, and such additional or alternate menu and other items as Del Taco may designate from time to time for on-premises and off-premises consumption ("Menu Items");
- B. Del Taco and Franchisee have executed a Franchise Agreement ("Franchise Agreement") granting Franchisee the right to operate one (1) Del Taco restaurant (the "Restaurant") and to produce and distribute products and services approved by Del Taco and use the Proprietary Marks in connection therewith under the terms and conditions of the Franchise Agreement;
- C. The Member, by virtue of his or her position with Franchisee, will gain access to certain of Del Taco's Confidential Information, as defined herein, and must therefore be bound by the same confidentiality and non-competition agreement that Franchisee is bound by.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, the Non-Disclosure Agreement does reference the expenditure of time, skill, effort, and money by Del Taco in developing its proprietary system. Specifically, it states that Del Taco has developed a distinctive system for operating restaurant businesses through significant investment. This system specializes in Mexican-American foods, burgers, shakes, and other menu items.
This acknowledgement is part of the background to justify the need for the Non-Disclosure Agreement. It emphasizes that the Del Taco System is a valuable asset that Del Taco has cultivated, implying that protecting this system from unauthorized use is crucial for maintaining its competitive advantage. The agreement aims to prevent franchisees or their members from disclosing or using confidential information gained through their association with Del Taco.
For a prospective Del Taco franchisee, this highlights the importance of adhering to the confidentiality terms outlined in the agreement. It reinforces that the Del Taco System is not just a set of procedures but a carefully developed asset that contributes to the brand's success. Therefore, franchisees must ensure that they and their staff protect this information to avoid potential legal repercussions and to uphold the integrity of the Del Taco brand.