Does Del Taco retain the right to construct and operate other Del Taco restaurants outside the Development Area?

According to Del Taco's 2025 Franchise Disclosure Document, Del Taco retains specific rights regarding the construction and operation of restaurants outside a franchisee's Development Area. Del Taco has the right to construct and operate other Del Taco restaurants and to utilize the Del Taco System or any part of it at any location outside the Development Area. They also retain the right to license others to do the same. This means that while a franchisee may have certain protected rights within their designated area, Del Taco is not restricted from expanding or franchising outside of that area.

Del Taco also retains the right to develop, use, and franchise any trade names, trademarks, service marks, trade symbols, emblems, signs, slogans, logos, or copyrights associated with the Del Taco System for use with similar or different franchise systems. This can be for the sale of the same, similar, or different products or services as those used in connection with the Del Taco System at any location outside the Development Area. These activities can be conducted on any terms and conditions that Del Taco deems advisable, without granting the developer any rights to them.

This retention of rights is a standard practice in franchising, allowing Del Taco to grow and adapt its brand as it sees fit. However, it's important for a prospective franchisee to understand that their protected territory has limitations. Del Taco can pursue opportunities outside of that territory without any obligation to the franchisee. This could potentially impact the franchisee's long-term growth strategy and market share, so it's crucial to consider this when evaluating the franchise opportunity.