Does the Del Taco Non-Disclosure and Non-Competition Agreement mention anything about producing and distributing products and services approved by Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
BACKGROUND:
- 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 Del Taco's 2025 Franchise Disclosure Document, the Non-Disclosure Agreement mentions the franchisee's right to produce and distribute products and services approved by Del Taco. Specifically, the agreement acknowledges that Del Taco grants the franchisee the right to operate a Del Taco restaurant and to produce and distribute approved products and services under the terms and conditions of the Franchise Agreement. This right is tied to the use of Del Taco's Proprietary Marks.
This clause confirms that as a Del Taco franchisee, you are authorized to produce and distribute products and services that Del Taco has approved. This is a standard element in franchise agreements, ensuring that franchisees adhere to the brand's standards and offerings. The reference to the "Franchise Agreement" emphasizes that the specifics of what you can produce and distribute will be detailed in that separate agreement.
Prospective franchisees should carefully review the Franchise Agreement to fully understand the scope and limitations of their rights to produce and distribute products and services. Understanding these rights and obligations is crucial for operating the franchise successfully and in compliance with Del Taco's requirements.