Taco Bell owners head to federal court in proximity dispute

INDIANAPOLIS (WISH) — The owner of the Taco Bell at Circle Centre Mall has filed a lawsuit alleging unfair competition against the newly planned Taco Bell Cantina, located just one-tenth of a mile away on West Washington Street.

The lawsuit, filed in Marion County Court, asserts a violation of the franchise agreement due to the close proximity of the two Taco Bell locations. The owner contends that the Cantina’s presence jeopardizes the business of the Circle Centre Mall Taco Bell.

On Monday, a Marion County Court judge granted the owner of Taco Bell Cantina 30 days to respond to the lawsuit. The legal battle escalated when Taco Bell’s corporate decision-maker on franchise agreements, the Taco Bell Franchisor, filed notice on Wednesday morning to move the dispute to federal court.

The Circle Centre Mall Taco Bell owner argues that its location does not fit the definition of a “captive” location. A Taco Bell Executive reportedly referred to the location as primarily serving customers visiting the mall.

However, Taco Bell Cantina distinguishes itself from traditional Taco Bell outlets. It features an open kitchen, serves alcoholic beverages, provides a dining area, hosts live music and operates extended hours until 4 a.m. These unique offerings aim to attract a broader clientele beyond mall visitors.

Despite the legal dispute, Cantina has announced that its grand opening will take place this Saturday.