What is the current status of the litigation case involving Foodmaker International Franchising Inc. and Foodmaker Inc. v. JNB Food Corporation, specifically regarding the possibility of an appeal or reconsideration by the defendants against Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Foodmaker International Franchising Inc. and Foodmaker Inc. v. JNB Food Corporation and William Ang. (Philippines Regional Trial Court, Case No. 97-1823). In 1997, Foodmaker International Franchising Inc. and Foodmaker Inc. filed an action against a former Jack in the Box franchisee in the
Republic of the Philippines to force the closure of certain units being operated unlawfully and without a license or franchise agreement. The defendants counterclaimed, asserting they suffered damages due to the franchise closures. The company won an initial ruling relating to the closure of the units, but defendants continued to pursue the action. Since then, the court has scheduled multiple hearings to ensure that the record is complete before issuing a final decision. On March 3, 2025, the court issued a decision in favor of the company and against the defendants, granting the company's request for a permanent injunction and dismissing the defendants' counterclaims. The company is currently awaiting whether the defendants will appeal or otherwise seek reconsideration of the court's decision.
Source: Item 3 — LITIGATION (FDD pages 12–16)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Foodmaker International Franchising Inc. and Foodmaker Inc. initiated a legal action against JNB Food Corporation, a former Jack in the Box franchisee, in the Philippines back in 1997. The purpose of the lawsuit was to enforce the closure of certain units that were operating without a proper license or franchise agreement. The defendants responded with a counterclaim, alleging damages resulting from the franchise closures.
The court initially ruled in favor of the company regarding the closure of the units, but the defendants continued to pursue the action. After numerous hearings to ensure a complete record, the court issued a decision on March 3, 2025, favoring the company. The ruling granted the company's request for a permanent injunction and dismissed the defendants' counterclaims.
As of the FDD's publication date, Del Taco is awaiting a decision from the defendants on whether they will appeal the court's decision or seek reconsideration. This means the case is not yet fully resolved and could potentially continue depending on the defendants' next steps.