Under the Del Taco Franchise Agreement, can a franchisee face competition from outlets that Del Taco owns?

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee may face competition from various sources, including outlets that Del Taco owns. This means that Del Taco does not grant exclusive territories to its franchisees. A Del Taco franchisee could potentially face competition from other franchisees, outlets owned by Del Taco, other distribution channels, or competitive brands controlled by Del Taco.

Del Taco grants franchisees the right to operate a restaurant at a specific location that Del Taco approves. While a franchisee receives a Protected Area, typically a one-mile radius around their restaurant, this protection has limitations. Del Taco retains rights to operate or franchise other restaurants, including co-branded or multi-branded locations, within or outside the Protected Area.

Furthermore, Del Taco's affiliate, Jack in the Box, operates quick-service restaurants that may be located near a Del Taco restaurant. These Jack in the Box restaurants can solicit and accept orders from customers near the Del Taco location, even within the Protected Area or Development Area. Del Taco states that it does not anticipate conflicts between Del Taco franchisees and Jack in the Box franchisees due to the different food products and dining experiences offered. However, if a conflict arises, Del Taco will analyze the situation and take actions it deems appropriate, potentially including nonbinding mediation. This lack of an exclusive territory and the potential for competition from both Del Taco-owned outlets and affiliated brands are important factors for prospective franchisees to consider.