Does the Del Taco Non-Disclosure and Non-Competition Agreement mention anything about Mexican-American foods?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
gend on them. The Developer shall place a stop transfer order against the transfer of any ownership interests, except transfers permitted by this Section 16. Each holder of an ownership interest in the Developer shall execute the Personal Guarantee included with this Agreement.
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- Confidentiality and Covenants Not to Compete. The Developer shall comply with the following confidentiality and covenant not to compete provisions:
- (a) The Developer and its Affiliates shall not use, in connection with the operation of any restaurant (other than the Restaurant) any part of the Del Taco System or any other names, marks, systems, logos, symbols or foodstuffs provided by Del Taco or proprietary foodstuffs provided by an approved vendor to the Developer or cause or permit any restaurant to offer Mexican food or look like, copy or imitate the Restaurant other than pursuant to an agreement with Del Taco.
- (b) The Developer and its Affiliates shall hold the Del Taco System and all parts of the Del Taco System in confidence. The Developer acknowledges that Del Taco has developed the Del Taco System over an extended period of time and at a substantial cost to Del Taco and, if used by other persons, firms or entities, would give those other persons, firms or entities an unfair competitive advantage. The Developer shall not disclose (except to employees or agents that need access to the information in order to construct or operate the Restaurant) or use or permit the use of the Del Taco System, or any part of the Del Taco System, except as authorized by this Agreement.
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 and Non-Competition Agreement does address Mexican-American foods. Specifically, the agreement states that the Developer (franchisee) cannot operate a restaurant that offers Mexican food or imitates a Del Taco restaurant, unless they have an agreement with Del Taco. This restriction applies during the term of the agreement.
This clause prevents a franchisee from using Del Taco's confidential information and system to open a competing Mexican-style restaurant, either during the franchise term or afterward. The FDD states that Del Taco has developed its system over a substantial period and cost, giving them a competitive advantage.
The agreement also specifies that the franchisee must ensure anyone involved in managing or operating the business signs a confidentiality agreement. This extends the protection of Del Taco's system and trade secrets beyond just the franchisee to anyone working within the franchise. The franchisee is obligated to notify Del Taco if they suspect any violation of the confidentiality agreement and cooperate in protecting Del Taco's interests, including potential lawsuits.