Does the Del Taco Non-Disclosure and Non-Competition Agreement mention anything about the terms and conditions of the Franchise Agreement?
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 Franchise Disclosure Document, the Non-Disclosure Agreement references the Franchise Agreement. Specifically, the Non-Disclosure Agreement states that Del Taco and the franchisee have executed a Franchise Agreement granting the franchisee the right to operate a Del Taco restaurant and use Del Taco's proprietary marks under the terms and conditions of the Franchise Agreement. The Non-Disclosure Agreement also states that the member, by virtue of his or her position with the franchisee, will gain access to certain confidential information and must be bound by the same confidentiality and non-competition agreement that the franchisee is bound by.
This indicates that the Non-Disclosure Agreement is linked to the Franchise Agreement, reinforcing the franchisee's obligations to protect Del Taco's confidential information and adhere to the non-competition terms outlined in both agreements. This is a common practice in franchising to ensure that both the franchisee and its employees or members are legally bound to protect the franchisor's interests.
Prospective franchisees should carefully review both the Franchise Agreement and the Non-Disclosure Agreement to fully understand their obligations and restrictions. They should also seek legal counsel to clarify any questions or concerns before signing these agreements.