Taco Bell has finally been cleared to use its name in Victoria after they agreed on a settlement with Taco Bill in court.

Taco Bill, a franchise that operates across the state had tried to block Taco Bell’s expansion plans by taking their license holder Collins Food to court.

Taco Bill had alleged that their similar names would lead customers to believe the two are affiliated, potentially damaging the franchise’s current market position.

In a statement, Collins Foods said “Collins Foods Limited is pleased to announce the settlement of the Federal Court proceedings commenced by Taco Bill Mexican Restaurants.’’

“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.”