Does the Del Taco Non-Disclosure and Non-Competition Agreement mention anything about on-premises and off-premises consumption?
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");
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the Non-Disclosure Agreement mentions on-premises and off-premises consumption in the context of defining the Del Taco System. Specifically, the Del Taco System involves restaurant businesses that specialize in Mexican-American foods, along with other menu items that Del Taco may designate for both on-premises and off-premises consumption. This definition is part of the background information in the Non-Disclosure Agreement.
This means that the confidential and proprietary information that a franchisee or prospective franchisee gains access to includes knowledge related to menu items sold for both types of consumption. The franchisee is obligated to protect this information and not use it for any purpose other than operating their Del Taco restaurant. This obligation extends to employees and agents of the franchisee who also have access to this information.
The mention of on-premises and off-premises consumption in the Non-Disclosure Agreement highlights the importance of protecting Del Taco's system for both dining experiences. It ensures that franchisees understand the scope of the confidential information they are entrusted with and the restrictions on its use, reinforcing the integrity and competitive advantage of the Del Taco brand.
Prospective franchisees should pay close attention to the scope of the Non-Disclosure Agreement to fully understand their obligations regarding confidential information, especially as it relates to the preparation and sale of menu items for both on-premises and off-premises consumption. This understanding is crucial for maintaining compliance and avoiding potential legal issues with Del Taco.