Where must all litigation and arbitration take place regarding a Del Taco franchise?

According to Del Taco's 2025 Franchise Disclosure Document, all litigation and arbitration involving a Del Taco franchise must take place in Orange County, California, and is subject to applicable state law. This is detailed in Item 17, which covers dispute resolution. This means that if a franchisee has a legal dispute with Del Taco, they will likely need to travel to California to resolve it, which could increase legal costs.

However, the FDD also notes exceptions to this rule for franchisees operating in specific states. For example, the Indiana addendum states that the provision concerning the place where arbitration will occur is deleted from the Franchise Agreement for Indiana franchisees. Similarly, the Rhode Island Securities Division requires that any provision restricting jurisdiction or venue to a forum outside of Rhode Island is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.

Prospective franchisees should be aware of these forum selection clauses and how they might affect their legal rights and costs. It is essential to review the specific state addenda to the Del Taco FDD to understand whether the standard forum selection clause is modified or voided by state law. Franchisees should consult with a legal professional to fully understand the implications of these clauses and addenda.