Is the provision concerning the location of arbitration deleted from the Del Taco Franchise Agreement for Indiana franchisees?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement requires binding arbitration. The arbitration will occur in a state other than Indiana, with costs being borne by the non-prevailing party. The provision concerning the place where arbitration will occur is deleted from the Franchise Agreement.
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 provision concerning the location of arbitration is deleted from the Franchise Agreement for Indiana franchisees. The document states that the Franchise Agreement requires binding arbitration, which would typically occur in a state other than Indiana, with the non-prevailing party bearing the costs. However, for franchisees operating in Indiana, the clause specifying the arbitration location is removed from the agreement.
This amendment is significant because it ensures that Indiana franchisees are not forced to arbitrate disputes outside of their state. This change likely aligns with Indiana state laws or regulations designed to protect franchisees from potentially unfair or burdensome arbitration requirements. By deleting this provision, Del Taco is complying with Indiana law and making the arbitration process more accessible and equitable for its Indiana-based franchisees.
Prospective Del Taco franchisees in Indiana should take note of this modification as it provides them with a more favorable legal environment compared to franchisees in other states where the standard arbitration clause applies. This could potentially save Indiana franchisees significant time and money in the event of a dispute with Del Taco, as they would not need to travel out of state for arbitration proceedings.