What law governs the agreement between Del Taco and the franchisee?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement shall be governed and construed in accordance with the internal laws of California, without regard to its conflicts of laws provisions.
However, the laws of the state in which the Developer resides or has its principal place of business shall govern the enforcement of the non-compete provisions of Section 17 of this Agreement.
Subject to the terms and provisions of Section 18, above, Del Taco and the Developer shall bring any controversy or claim arising out of this Agreement only before a court of competent jurisdiction in Orange County, California.
The parties hereto irrevocably waive trial by jury in any action, proceeding, or counterclaim in connection with any matter or dispute of any kind arising under or in any way connected with this Agreement or any right or remedy hereunder, whether at law or in equity, brought by either party hereto.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, the franchise agreement is generally governed and construed in accordance with the internal laws of California, without regard to its conflicts of laws provisions. This means that California law will be used to interpret the agreement, regardless of where the franchisee is located, with one exception.
However, the laws of the state in which the Developer resides or has its principal place of business shall govern the enforcement of the non-compete provisions of Section 17 of this Agreement. This means that if there is a dispute about the non-compete clause, the laws of the state where the franchisee lives or has their main business will be used.
Any controversy or claim arising out of this Agreement only before a court of competent jurisdiction in Orange County, California. Also, both Del Taco and the franchisee waive their rights to a jury trial for any disputes related to the franchise agreement.