Does the Del Taco Non-Disclosure and Non-Competition Agreement specify the number of Del Taco restaurants a franchisee is granted the right to operate?
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 FDD, the Non-Disclosure Agreement itself does not specify the number of Del Taco restaurants a franchisee is granted the right to operate. However, the FDD does mention agreements that grant rights to operate a specific number of restaurants.
The Franchise Agreement grants the franchisee the right to operate one Del Taco restaurant. Alternatively, a Development Agreement can be entered into for the development of at least 5 or more Del Taco Restaurants. The Development Agreement grants the developer limited exclusive Development Rights for Restaurants identified on Exhibit B and requires them to develop and open the total number of Restaurants set forth on and in accordance with the Development Schedule.
Therefore, while the Non-Disclosure Agreement doesn't detail the number of restaurants, other agreements associated with the Del Taco franchise, such as the Franchise Agreement and the Development Agreement, do specify the number of restaurants a franchisee or developer is entitled to operate or develop.