Does the Del Taco FDD disclose any pending litigation involving Foodmaker International Franchising Inc.?
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, there is a pending action involving Foodmaker International Franchising Inc. The document states that 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. The lawsuit was initiated to force the closure of certain units being operated unlawfully and without a license or franchise agreement.
The defendants in the case counterclaimed, asserting they suffered damages due to the franchise closures. While the company initially won a ruling regarding the closure of the units, the defendants continued to pursue the action. The court scheduled multiple hearings to ensure the record was complete before making a final decision.
On March 3, 2025, the court issued a decision in favor of Foodmaker International Franchising Inc. and against the defendants, granting the company's request for a permanent injunction and dismissing the defendants' counterclaims. As of the FDD's publication, the company is awaiting to see if the defendants will appeal or otherwise seek reconsideration of the court's decision.