If a dispute arises, where must all litigation and arbitration take place for a Del Taco franchise?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the Agreement | Summary |
|---|---|---|
| v. Choice of forum | 17.2 and 17.3 | All litigation and arbitration must take place in Orange County, California, subject to applicable state law. See Exhibit F. |
Item 17 of the Disclosure Document, Sections (u), (v), and (w), is amended to omit any reference to selection of an out-of-Indiana forum or choice of law.
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.
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, the standard franchise agreement stipulates that all litigation and arbitration must occur in Orange County, California, and is subject to applicable state law. This is detailed under the "Choice of forum" provision in Item 17 of the FDD.
However, this requirement may be modified based on the franchisee's location. For instance, for franchisees operating in Indiana, the provision concerning the location of arbitration is deleted from the Franchise Agreement. Similarly, for franchisees in Washington, any arbitration or mediation must occur in Washington state, or in a location mutually agreed upon, or as determined by the arbitrator or mediator.
These modifications highlight the importance of understanding how state-specific franchise laws can impact the standard terms of the Del Taco franchise agreement. Prospective franchisees should carefully review Exhibit F of the FDD, which contains state-specific addenda, and consult with legal counsel to understand their rights and obligations in their particular state.