factual

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

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

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 rights to participate in class action lawsuits and jury trials. Specifically, the agreement states that the parties waive the right to bring or be a member of any class action suit, and they also waive the right to a trial by jury. This waiver means that any disputes arising under the franchise agreement must be resolved individually, and without a jury trial.

This provision is common in franchise agreements, as it allows Del Taco to manage disputes on an individual basis and avoid the potentially high costs and risks associated with class action litigation. It also provides more control over the outcome of disputes, as decisions are made by a judge rather than a jury. However, it also means that franchisees give up certain legal rights they would otherwise have.

For a prospective Del Taco franchisee, this waiver has significant implications. It means that if they have a dispute with Del Taco, they cannot join with other franchisees to bring a class action suit. They must pursue their claims individually, which can be more expensive and time-consuming. Additionally, they will not have the opportunity to have their case decided by a jury, which some may see as a disadvantage. Franchisees should carefully consider these implications before entering into a franchise agreement with Del Taco.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.