Under what conditions would the Del Taco agreement to arbitrate become null and void?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
17.3.6 This agreement to arbitrate will survive the expiration or termination of this Agreement.
17.4 Injunctive Relief.
Notwithstanding anything to the contrary contained in this Section 17, either party may file suit in a court of competent jurisdiction (pursuant to Section 17.2) for the entry of temporary or preliminary injunctive relief, restraining orders, and orders of specific performance, including
injunctive relief pertaining to Franchisee's use of the System, including Del Taco's trademarks and service marks.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
The 2025 Del Taco Franchise Disclosure Document states that the agreement to arbitrate survives the expiration or termination of the agreement. However, the document outlines exceptions where a party may file suit in court instead of arbitration. Specifically, either Del Taco or the franchisee can seek temporary or preliminary injunctive relief, restraining orders, and orders of specific performance in a court of competent jurisdiction. This includes injunctive relief related to the franchisee's use of the Del Taco system, trademarks, and service marks.
This means that while Del Taco generally prefers disputes to be resolved through arbitration, it retains the right to seek immediate court intervention to protect its brand and system. A franchisee would also have the same right to seek injunctive relief from a court. This is a fairly standard clause in franchise agreements, as it allows both parties to quickly address actions that could cause immediate and irreparable harm.
Beyond these specific exceptions for injunctive relief, the Del Taco FDD does not provide explicit conditions under which the agreement to arbitrate would become completely null and void. The agreement to arbitrate remains in effect even after the franchise agreement expires or is terminated. Therefore, unless both parties mutually agree in writing to waive arbitration, it appears to be the required method for resolving disputes, except for the specific instances where injunctive relief is sought.