factual

What state's laws govern the Del Taco franchise agreement?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

17. Governing Law and Dispute Resolution.

  • 17.1 Governing Law. This Agreement shall be governed and construed in accordance with the laws of California, without regard to its conflicts of laws provisions. However, the laws of the state in which the Restaurant operates shall govern the enforcement of the non-compete provisions of Section 10 of this Agreement. Nothing in this Section 17 is intended by the parties to subject this Agreement to any franchise, business opportunity, antitrust, consumer protection, or any other law, rule, or regulation of the State of California to which this Agreement would not otherwise be subject.

Source: Item 22 — CONTRACTS (FDD pages 58–59)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, the franchise agreement is governed and construed in accordance with the laws of California, without regard to its conflicts of laws provisions. This means that generally, California law will be applied to interpret and enforce the franchise agreement between Del Taco and the franchisee. However, there is an exception regarding non-compete provisions.

The laws of the state in which the Del Taco restaurant operates will govern the enforcement of the non-compete provisions outlined in Section 10 of the agreement. This means that if a dispute arises concerning a franchisee's agreement not to compete with Del Taco after the franchise relationship ends, the laws of the state where the restaurant is located, not California, will be used to determine the enforceability of that non-compete clause.

The FDD specifies that nothing in Section 17 is intended to subject the agreement to any franchise, business opportunity, antitrust, consumer protection, or any other law, rule, or regulation of the State of California to which the agreement would not otherwise be subject. This clarifies that while California law governs the agreement, it does not extend to imposing additional regulations that wouldn't normally apply.

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.