Where must Del Taco and the Developer bring any controversy or claim arising out of the Development Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the terms and provisions of Section 18, above, Del Taco and the Developer shall bring any controversy or claim arising out of this Agreement only before a court of competent jurisdiction in Orange County, California.
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 Del Taco's 2025 Franchise Disclosure Document, any controversy or claim arising out of the Development Agreement must be brought before a court of competent jurisdiction in Orange County, California. This is subject to the terms and provisions of Section 18, which likely outlines alternative dispute resolution methods such as arbitration. Both Del Taco and the Developer are bound by this venue selection.
This clause dictates where legal proceedings must occur, which can have significant implications for the Developer. Litigating in Orange County, California, could increase expenses for a Developer who is not located in that area due to travel, accommodation, and potentially higher legal fees. It also means that California law will govern the interpretation and enforcement of the Development Agreement, as stated in the governing law provision.
The document also stipulates that both parties irrevocably waive their right to a jury trial in any action, proceeding, or counterclaim related to the Development Agreement. This means that any disputes will be resolved by a judge rather than a jury, which can affect the outcome of legal proceedings depending on the complexity and nature of the case.
It is important for a prospective Del Taco Developer to understand the implications of these clauses. They should consider the potential costs and inconveniences of litigating in Orange County, California, and should consult with legal counsel to fully understand their rights and obligations under the Development Agreement.