Where will all litigation and arbitration related to my Del Taco franchise take place?

According to Del Taco's 2025 Franchise Disclosure Document, any litigation and arbitration related to the franchise must take place in Orange County, California, but this is subject to applicable state law. This means that if a dispute arises between you and Del Taco that leads to legal action or arbitration, the venue for these proceedings will be in Orange County, California, unless state law dictates otherwise.

For prospective franchisees, this is an important consideration because it means you may have to travel to California to resolve disputes, which could increase your legal costs. It is fairly common in franchising for the venue to be the location of the franchisor's headquarters, but it is something to be aware of.

However, the FDD also includes addenda for certain states like Washington and Indiana that modify this requirement. For example, the Washington addendum states that for franchises 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. The Indiana addendum states that the provision concerning the place where arbitration will occur is deleted from the Franchise Agreement. Therefore, it is important to check for any state-specific addenda that may alter the choice of forum.

Prospective franchisees should carefully review Item 17 and Exhibit F of the Del Taco FDD, along with any state-specific addenda, to fully understand the dispute resolution process and venue requirements. It is also advisable to consult with a legal professional to assess the implications of these provisions, especially considering the potential for increased costs associated with out-of-state litigation or arbitration.