Does the agreement to arbitrate survive the expiration or termination of the Del Taco franchise agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.3.6 This agreement to arbitrate will survive the expiration or termination of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the agreement to arbitrate survives the expiration or termination of the franchise agreement.
Specifically, the FDD states that the agreement to arbitrate outlined in Section 17.3.6 will remain in effect even after the franchise agreement ends, whether through expiration or termination. This means that any disputes arising even after the franchise relationship concludes must still be resolved through arbitration, as defined in the original agreement.
This clause ensures that both Del Taco and the franchisee are bound to resolve disputes through arbitration, even after the franchise term ends. This can be beneficial by providing a consistent and potentially more efficient method of dispute resolution compared to traditional litigation. However, franchisees should be aware that this obligation extends beyond the active term of the franchise, and they may be required to participate in arbitration proceedings even after they have ceased operating as a Del Taco franchisee.