What is the radius of the Protected Area around an approved Del Taco restaurant location?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to certain reserved rights in the Franchise Agreement, we will grant you a protected area around the approved location of the Restaurant (the "Protected Area"). The Protected Area is a circular area within
a one-mile radius from the front door of your Del Taco Restaurant, excluding Alternative Points of Distribution (described in the Franchise Agreement).
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Our affiliate, Different Rules, LLC ("Jack in the Box Franchisor"), franchises quick-service restaurants that operate under the "Jack in the Box" trademark and offer a variety of foods, including hamburgers, specialty sandwiches, French fries, tacos, salads, bowls, drinks, and side items. Our affiliate, Jack in the Box Properties, LLC ("JIB Properties") operates company-owned Jack in the Box restaurants. The principal business address for Jack in the Box Franchisor and JIB Properties is 9357 Spectrum Center Blvd., San Diego, California 92123. Jack in the Box restaurants may be located near your Del Taco restaurant's location, and may solicit and accept orders from customers near your Del Taco restaurant's location or within your Protected Area (under a Franchise Agreement), or Development Area (under a Development Agreement). These Jack in the Box restaurants may be located within your Protected Area or Development Area, or open there at any time. Though we have no current plans to do so, we and our affiliates (including those identified in Item 1) may operate or franchise co-branded or multi-branded Restaurants within your specified area that use our trade name, trademarks, and service marks together with the trade name, trademarks and service marks of one or more related or unrelated companies. We do not anticipate conflicts with, or between, Del Taco franchisees and Jack in the Box franchisees, or between Del Taco franchisees and the operators of co-branded or multi-branded restaurants, regarding territory, customers, or franchisor support because we only grant Del Taco franchises and the restaurant concepts offer different food products and dining experiences. If a conflict does arise, we will analyze the conflict and take actions (if any) that we deem appropriate, which may include participating in nonbinding mediation.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee receives a protected area around their restaurant. This protected area is defined as a circular area with a one-mile radius from the front door of the Del Taco restaurant, excluding Alternative Points of Distribution. This means Del Taco will not operate or license another Del Taco restaurant within that one-mile radius during the term of the Franchise Agreement, subject to certain reservations and limitations. However, this protection does not apply to any Del Taco restaurant existing or under development when the Franchise Agreement is signed.
While Del Taco grants this protected area, it's important to note that the franchisee does not receive an exclusive territory. The franchisee may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Del Taco. Additionally, Del Taco and its affiliates retain all rights to operate other branded, co-branded, or multi-branded restaurants, sell similar or dissimilar products and services, and engage in any other activities they deem appropriate, even within the protected area, although they are not required to compensate the franchisee if they do so.
Furthermore, the FDD mentions that Jack in the Box restaurants, which are franchised by an affiliate of Del Taco, may be located near a Del Taco restaurant and may solicit and accept orders from customers within the Del Taco restaurant's protected area. The franchisor states that they don't anticipate conflicts between Del Taco franchisees and Jack in the Box franchisees because the restaurant concepts offer different food products and dining experiences. However, if a conflict does arise, Del Taco will analyze the conflict and take actions they deem appropriate, which may include participating in nonbinding mediation.
Prospective franchisees should be aware that while they receive a one-mile radius protected area, this protection has limitations. Competition from other Del Taco channels and affiliated brands like Jack in the Box is possible, and Del Taco retains significant rights within the area. It is important to fully understand these limitations and potential competitive factors before investing in a Del Taco franchise.