Does the Del Taco Non-Disclosure and Non-Competition Agreement mention anything about using Proprietary Marks?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
as 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.
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 addresses the use of Proprietary Marks. Specifically, the background section of the agreement states that the franchisee is granted the right to use Del Taco's Proprietary Marks in connection with the operation of their restaurant, under the terms and conditions outlined in the Franchise Agreement. This indicates that the franchisee's use of these marks is subject to certain stipulations and guidelines set forth by Del Taco.
Furthermore, the agreement emphasizes the importance of maintaining the confidentiality of the Del Taco System, which includes names, marks, systems, logos, and symbols provided by Del Taco. The developer (franchisee) is prohibited from using any part of the Del Taco System or any of these marks in connection with any restaurant other than the franchised Del Taco restaurant, unless otherwise agreed upon with Del Taco. This restriction ensures that the franchisee does not operate any competing business using Del Taco's intellectual property.
This clause protects Del Taco's brand identity and prevents franchisees from leveraging the established brand recognition for unauthorized ventures. It also ensures that the franchisee understands the importance of protecting Del Taco's intellectual property and adhering to the brand standards. Prospective franchisees should carefully review the terms and conditions of the Franchise Agreement to fully understand the scope of permitted use and any restrictions on the use of Del Taco's Proprietary Marks.