Does the Del Taco franchise agreement allow for class action suits?

According to the 2025 Del Taco Franchise Disclosure Document, franchisees are restricted from participating in class action lawsuits against the company. Specifically, the agreement stipulates that franchisees waive their right to bring, or be a member in, any class action suit to the fullest extent permitted by law. This means a franchisee cannot join with other franchisees to sue Del Taco as a group.

This waiver has significant implications for prospective franchisees. It means that any legal disputes with Del Taco must be pursued individually, which can be more expensive and time-consuming than participating in a class action. Class action suits allow plaintiffs to pool resources and share the costs of litigation, making it easier to challenge corporate practices. By waiving this right, franchisees bear the full burden of any legal action they wish to take against Del Taco.

Such waivers are relatively common in franchise agreements. Franchisors often include them to avoid large, costly class action lawsuits that could impact their business model or financial stability. However, franchisees should carefully consider the implications of this waiver and whether it aligns with their risk tolerance. It is advisable to seek legal counsel to fully understand the ramifications of this provision before signing the franchise agreement.

Furthermore, the Del Taco franchise agreement also includes a clause that any judicial action or proceeding must be brought within 18 months from the event that is the basis of the action. This limitation on actions further restricts the time frame within which a franchisee can pursue legal recourse, reinforcing the importance of understanding all aspects of the agreement before investing in a Del Taco franchise.