Does the Del Taco Non-Disclosure and Non-Competition Agreement mention anything about the Proprietary Marks?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 FDD, the Non-Disclosure Agreement does address the use of Proprietary Marks. Specifically, the agreement states that the franchisee is granted the right to operate a Del Taco restaurant and use the Proprietary Marks in connection with the products and services approved by Del Taco, under the terms and conditions outlined in the Franchise Agreement. This indicates that the franchisee's use of Del Taco's Proprietary Marks is subject to the stipulations set forth in the broader Franchise Agreement.
Furthermore, the Non-Disclosure Agreement emphasizes the protection of Del Taco's confidential information and proprietary system. It states that the member, due to their position with the franchisee, will have access to Del Taco's confidential information and must adhere to the same confidentiality and non-competition terms as the franchisee. This underscores the importance of safeguarding Del Taco's assets, including its Proprietary Marks, from unauthorized use or disclosure.
In practical terms, this means that as a Del Taco franchisee, you are permitted to use Del Taco's Proprietary Marks, but only as explicitly allowed in the Franchise Agreement. Any unauthorized use of these marks could lead to a breach of contract and potential legal repercussions. Prospective franchisees should carefully review the Franchise Agreement to fully understand the scope and limitations of their rights to use Del Taco's Proprietary Marks.