What rights does Del Taco have in the event of a violation of Section 17 by a Del Taco Developer?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) The Developer acknowledges that any violation of this Section 17 shall constitute both a material breach of this Agreement and a tortious interference with Del Taco's rights in its confidential information and trade secrets.
The Developer further acknowledges that any violation will cause irreparable and incalculable harm to Del Taco and agrees that Del Taco shall have the right to obtain temporary and permanent injunctions to prevent violations.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a violation of Section 17 by a Del Taco Developer constitutes a material breach of the Development Agreement and a tortious interference with Del Taco's rights regarding confidential information and trade secrets. Section 17 likely refers to the non-compete clause outlined in the document.
Del Taco has the right to seek both temporary and permanent injunctions to prevent further violations. This means Del Taco can go to court to immediately stop the Developer from continuing the actions that violate Section 17, and can also seek a permanent court order preventing such actions in the future.
Furthermore, the Developer acknowledges that any violation of Section 17 will cause irreparable and incalculable harm to Del Taco. This acknowledgement strengthens Del Taco's legal position when seeking injunctive relief, as it demonstrates the Developer's understanding of the potential damage caused by their actions. This clause emphasizes the importance of protecting Del Taco's confidential information and trade secrets, and the serious consequences for developers who violate these protections.