factual

What is the 'Restaurant' referring to in the Del Taco Non-Disclosure and Non-Competition Agreement?

Del_Taco Franchise · 2025 FDD

Answer 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;

Source: Item 23 — RECEIPTS (FDD pages 59–325)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, the term "Restaurant" in the context of the Non-Disclosure and Non-Competition Agreement refers to the specific Del Taco restaurant that the franchisee is granted the right to operate under the Franchise Agreement. This is clarified in the Background section of the agreement.

The Franchise Agreement grants the franchisee the right to operate one Del Taco restaurant. This restaurant is where the franchisee is authorized to produce and distribute approved products and services, and to use Del Taco's proprietary marks, all under the terms and conditions outlined in the Franchise Agreement.

This definition is important because the Non-Disclosure and Non-Competition Agreement places restrictions on the franchisee and their affiliates regarding the use of the Del Taco System and confidential information. These restrictions specifically prevent the franchisee from using the Del Taco System in connection with any other restaurant (other than the franchised Restaurant) or from operating any restaurant that offers Mexican food or imitates a Del Taco restaurant, unless otherwise agreed with Del Taco. This ensures that the franchisee focuses their efforts on the success of their franchised location and does not unfairly compete with the Del Taco system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.