What is the radius of the Protected Area around a Del Taco Restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise described in this Agreement, for so long as Franchisee is in full compliance with this Agreement, Del Taco will not, during the term of this Agreement, operate or license others to operate a Del Taco Restaurant at a physical premises located within the Protected Area. "Protected Area" shall mean the area within a one (1) mile radius around the Restaurant, with the exception of any outlet that is open, under construction or site approved or that is defined in this Agreement as an Alternative Point of Distribution (defined below) that is developed, constructed, operated, merchandised, sold, licensed and/or franchised to others by Del Taco to sell Menu Items, products, and services to the public within the Protected Area, as may be revised in accordance with Section 1.2.5 hereof. "Alternative Point(s) of Distribution" shall mean any outlet described in Section 1.2.2 of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee is granted a protected area. This means that, provided the franchisee is in full compliance with the Franchise Agreement, Del Taco will not operate or license another Del Taco Restaurant within that protected area during the agreement's term.
The protected area is defined as the area within a one (1) mile radius around the franchisee's Del Taco Restaurant. However, this protection is subject to certain exceptions. Any outlet that is already open, under construction, or site-approved, as well as any Alternative Points of Distribution, are excluded from this protected area. Alternative Points of Distribution include outlets on military bases, college campuses, hospitals, fairs, casinos, airports, and larger retail outlets like Wal-Mart and Home Depot.
Del Taco retains the right to advertise and promote the Del Taco system both inside and outside the protected area. They can also sell or authorize others to sell menu items, products, and services through Alternative Points of Distribution within the protected area. These stipulations mean that while a franchisee has a one-mile radius of protection from traditional Del Taco restaurants, Del Taco can still operate or license other sales points within that area, which could impact the franchisee's potential customer base.