For a Del Taco franchise purchased in Washington, where will the arbitration or mediation site be located?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Site of Arbitration, Mediation, and/or Litigation. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the Development Agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, if a franchisee purchases a Del Taco franchise in Washington, the location for any arbitration or mediation will be determined according to the Washington Addendum.
The addendum specifies that the arbitration or mediation site must be in the state of Washington. However, there are two exceptions to this rule. The location can be a place mutually agreed upon by both parties at the time of the arbitration or mediation. Alternatively, the arbitrator or mediator can determine the location at the time of the arbitration or mediation.
Furthermore, the addendum states that if litigation is not precluded by the Development Agreement, a franchisee has the option to initiate an action or proceeding in Washington if it arises from the sale of franchises or a violation of the Washington Franchise Investment Protection Act.