In the event of a conflict between the Del Taco Sublease and the Franchise Agreement, which agreement takes precedence?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Jurisdiction, Venue and Choice of Law.
This agreement shall be interpreted and construed in accordance with Section 17 of the Franchise Agreement.
In the event of any conflict of law, the laws of the State of California shall prevail (without regard to, and without giving effect to, the application of California conflict of law rules).
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
Based on the 2025 Del Taco Franchise Disclosure Document, Section 6 of Item 23 states that the Franchise Agreement governs in the event of a conflict. Specifically, the FDD indicates that the governing law and dispute resolution provisions outlined in Section 17 of the Franchise Agreement will apply to all disputes arising under the agreement and the relationship between Del Taco and the franchisee.
This means that any legal interpretations or disputes related to the franchise, including those involving the sublease, will be resolved according to California law, as stated in Section 17 of the Franchise Agreement. The venue for any judicial proceedings will be in the state or federal court located where Del Taco's corporate offices are located at the time the proceeding is filed.
This clause ensures that Del Taco maintains control over legal matters and that all franchisees are subject to the same legal standards and dispute resolution processes. Prospective franchisees should carefully review Section 17 of the Franchise Agreement to fully understand their rights and obligations in case of a dispute.