Under the Del Taco Franchise Agreement, can a franchisee face competition from other franchisees?

According to Del Taco's 2025 Franchise Disclosure Document, franchisees may face competition from various sources. Specifically, the FDD states that a franchisee will not receive an exclusive territory. This means that a Del Taco franchisee could face competition from other Del Taco franchisees, from outlets that Del Taco owns themselves, or from other channels of distribution or competitive brands that Del Taco controls.

Del Taco does grant a protected area around the approved location of the restaurant, which is a circular area within a one-mile radius from the front door of the Del Taco restaurant, excluding Alternative Points of Distribution. However, this protected area does not eliminate the possibility of competition from other franchisees or company-owned outlets outside of that radius.

Furthermore, Del Taco's affiliate, Different Rules, LLC, franchises quick-service restaurants that operate under the "Jack in the Box" trademark. These Jack in the Box restaurants may be located near a Del Taco restaurant's location and may solicit and accept orders from customers near the Del Taco restaurant's location or within the franchisee's Protected Area (under a Franchise Agreement), or Development Area (under a Development Agreement).