The Mexican stand-off has come to end. Both global franchise giant Taco Bell and Aussie chain Taco Bill will be free to operate in Victoria after the two brands reached a settlement in Federal Court.

Taco Bill, a franchise that operates across the state had previously sought to block Taco Bell’s massive expansion plans, taking Victorian and New South Wales licensee Collins Foods Limited to court.

Taco Bill alleged that the similarity in names would cause customers to believe the two are affiliated, potentially damaging the franchise’s current market position.

However, in a statement posted to the ASX on Thursday, Collins Foods revealed that battle had come to an end.

Taco Bell settlement reached

The company, which also operates a vast number of KFC restaurants across the country said it had reached an agreement with Taco Bill that allowed for both parties to continue trading.

“Collins Foods Limited is pleased to announce the settlement of the Federal Court proceedings commenced by Taco Bill Mexican Restaurants,” the statement read.

“A settlement was agreed between the Taco Bell brand (the franchisor), Collins Foods and the applicant subject to certain conditions including the filing of final orders with the Federal Court of Australia. As a result, Collins Foods will continue to open and operate Taco Bell restaurants in Victoria.”

The announcement sees Collins Foods resume its aggressive roll out of Taco Bell restaurants, which previously estimated more than 100 outlets were soon to open across Australia and New Zealand.

Taco Bell Victoria

The latest settlement marks the second legal battle between Taco Bell and Taco Bill. The pair met in court under similar circumstances when Taco Bell made its second failed attempt to break into the Australian market in the 1990s.

With Taco Bell attracting significant attention in New South Wales and Queensland this time around, Taco Bill reignited the Federal Court flame. However, it wasn’t enough to stop the US franchise giant launching an inaugural restaurant on Chapel St.

Opening back in December, Taco Bell kicked the Victorian expansion off with a world-first ‘Tram-Thru’ installation. The campaign was an enormous success, with the general public queuing for hours to get a taste of US franchise giant’s infamous flavours.

It seems now, with the blessing of both Taco Bill and the Federal Court, it’s full-steam ahead for Collins Foods’ Taco Bell venture in Victoria.