What specific activities are Del Taco Developers prohibited from engaging in within the protected area of any Del Taco Restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) The Developer (and if a legal entity, the Developer's owners holding a 10% or greater interest in the Developer), during the term of this Agreement and for a period of two years after the expiration or termination of this Agreement, shall not, within the Protected Area of any Restaurant or within two miles of any other Del Taco restaurant owned and/or operated by Del Taco or any other franchisee or licensee of Del Taco, (i) engage in or acquire any direct or indirect interest in any business that uses, duplicates or simulates in any way the Del Taco System or any portion of the Del Taco System, and/or (ii) engage in any food service business similar to the food service business operated under the Del Taco System.
(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 Developer faces specific restrictions regarding competitive activities within and near Del Taco locations. During the term of the Development Agreement and for two years after its expiration or termination, the Developer (including owners with a 10% or greater interest) is prohibited from certain actions.
Specifically, the Developer cannot engage in or acquire any direct or indirect interest in any business that uses, duplicates, or simulates the Del Taco System or any part of it. This prevents the Developer from leveraging their knowledge of Del Taco's operations to benefit a competing business. Additionally, the Developer is barred from engaging in any food service business similar to the Del Taco System.
These restrictions apply within the protected area of any Del Taco Restaurant and within two miles of any other Del Taco restaurant owned and/or operated by Del Taco or any other franchisee or licensee. Violating these terms constitutes a material breach of the Development Agreement and a tortious interference with Del Taco's confidential information and trade secrets, potentially leading to legal action, including temporary and permanent injunctions to prevent further violations.