What is the 'Del Taco System' as defined in the Non-Disclosure and Non-Competition Agreement?

According to the 2025 Del Taco FDD, the 'Del Taco System' or 'System' is defined as a distinctive and proprietary system developed by Del Taco for establishing and operating restaurant businesses. These restaurants specialize in selling Mexican-American foods like tacos and burritos, along with other items such as burgers, shakes, desserts, French fries, breakfast items, and soft drinks. The system also includes any additional or alternate menu items that Del Taco may designate from time to time for both on-premises and off-premises consumption.

This definition is important because it establishes the scope of what Del Taco considers its protected intellectual property and trade secrets. Franchisees are granted the right to operate a Del Taco restaurant and use the Proprietary Marks, but they must adhere to the terms and conditions of the Franchise Agreement. The non-disclosure agreement ensures that franchisees and their staff who gain access to Del Taco's confidential information are bound by the same confidentiality and non-competition terms.

The FDD emphasizes that Del Taco has invested significant resources in developing the Del Taco System, and its unauthorized use by others would create an unfair competitive advantage. Therefore, franchisees are obligated to maintain the confidentiality of the Del Taco System and all its components. This includes the Standard Operating Procedures Manual, any other manuals or materials designated for use with the Del Taco System, and any other information Del Taco designates for confidential use. Unauthorized disclosure or use of this information could result in substantial harm to Del Taco.