Does the Del Taco agreement to arbitrate survive the expiration or termination of the Franchise Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
MISCELLANEOUS.
The terms and provisions contained herein which by their terms or reasonable implication are intended to survive the termination of this Agreement shall remain effective.
Arbitration.
Except as otherwise provided in this Agreement, any claim, controversy or dispute arising out of or relating to this Agreement, the Restaurant, or the relationship created by this Agreement, including any claim by Developer or its owners, concerning the entry into, the performance under, or the termination of this Agreement, or any other agreement between the parties will be resolved via binding arbitration under the authority of the Federal Arbitration Act in accordance with the following provisions:
- (a) Any arbitration will be administered by the American Arbitration Association (or its successor) pursuant to its then-current commercial arbitration rules and procedures.
The arbitrator will have the authority to decide issues regarding arbitrability and the scope of the arbitrator's jurisdiction.
The arbitration must take place in the county in which our headquarters are located at the time of the dispute (currently Orange County, California).
- (b) Any arbitration must be on an individual basis, and not as part of a common, consolidated, or class action.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the terms and provisions that are intended to survive the termination of the agreement will remain effective.
Specifically, the Del Taco franchise agreement states that any claim, controversy, or dispute arising out of or relating to the agreement, the restaurant, or the relationship created by the agreement, including any claim by the Developer or its owners, concerning the entry into, the performance under, or the termination of the agreement, or any other agreement between the parties will be resolved via binding arbitration. The arbitration must be administered by the American Arbitration Association and take place in the county in which Del Taco's headquarters are located at the time of the dispute, which is currently Orange County, California.
This means that even after the franchise agreement expires or is terminated, the agreement to arbitrate disputes remains in effect. This is a common practice in franchising, as it ensures that disputes arising from the franchise relationship can be resolved efficiently and cost-effectively, even after the formal agreement has ended. However, any arbitration must be on an individual basis, and not as part of a common, consolidated, or class action.