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I don't think that's what happened? Based on this article and another one I read, it seems that now the Taco Tuesday trademark is relinquished meaning anyone can use it. I'm guessing taco bell would rather everyone be able to use it including them rather than it being locked down by someone who's not them.
Indeed that was the case:
https://bennystacos.com/taco-tuesday-legendary-tradition/
So Taco John gave up the trademark and now any restaurant can advertise "Taco Tuesday" specials.
My understanding is Taco John’s used to prevent smaller shops from using it