factual

What state's laws govern the Del Taco agreement?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

Choice of Law. The laws of the State of California shall govern the interpretation and construction of this Agreement, without regard to conflicts of laws principles.

Source: Item 23 — RECEIPTS (FDD pages 59–325)

What This Means (2025 FDD)

According to the 2025 Del Taco Franchise Disclosure Document, the laws of the State of California govern the interpretation and construction of the franchise agreement. This is without regard to California's conflict of laws principles. This means that California law will be used to interpret the agreement, regardless of any potential conflicts with the laws of other states.

This clause is fairly standard in franchise agreements, as it provides clarity and predictability regarding which jurisdiction's laws will apply. However, there is an exception regarding the non-compete provisions. 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 the agreement.

Any judicial proceeding relating to the agreement must be filed in the state or federal court located in the jurisdiction in which Del Taco's corporate offices are located at the time the proceeding is filed. The franchisee waives any right to challenge the existence of personal jurisdiction in that state or federal court and the convenience of the forum. Franchisees should be aware of this and understand that they may have to travel to California for any legal proceedings related to the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.