Does the Del Taco agreement allow for a jury trial in the event of a dispute?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties hereto irrevocably waive trial by jury in any action, proceeding, or counterclaim in connection with any matter or dispute of any kind arising under or in any way connected with this Agreement or any right or remedy hereunder, whether at law or in equity, brought by either party hereto.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, franchisees waive their right to a jury trial. Item 23 of the FDD states that the parties involved in the agreement, which includes Del Taco and the franchisee, "irrevocably waive trial by jury in any action, proceeding, or counterclaim in connection with any matter or dispute of any kind arising under or in any way connected with this Agreement or any right or remedy hereunder, whether at law or in equity, brought by either party hereto."
This means that any legal disputes arising from the franchise agreement will be resolved by a judge rather than a jury. This is a common practice in franchise agreements, as it can lead to quicker and potentially less costly resolutions. Franchise agreements often involve complex legal and financial issues, and franchisors may prefer to have these matters decided by a judge who is experienced in these areas.
Additionally, the document states that "Any judicial action or proceeding brought with respect to this Agreement must be brought within a period of 18 months from the occurrence of the event that is the basis of the action. The parties waive, to the fullest extent permitted by law, the right to bring, or be a member in, any class action suit and the right to trial by jury." This further emphasizes the waiver of a jury trial and also limits the time frame in which a franchisee can bring a legal action against Del Taco. It also prevents franchisees from participating in class action lawsuits against the company.
Prospective Del Taco franchisees should carefully consider the implications of waiving their right to a jury trial and the limitation on actions before signing the franchise agreement. It is advisable to seek legal counsel to fully understand these provisions and their potential impact on their rights.