factual

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

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, 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. This waiver is part of the broader agreement that includes clauses on choice of law, choice of forum, and limitations on legal actions.

This means that any disputes arising from the franchise agreement must be pursued individually, and any legal proceedings will not involve a jury. This is a common practice in franchise agreements, as it streamlines dispute resolution and reduces the potential for large, costly class action suits. However, it also means that a franchisee cannot join with other franchisees to collectively sue Del Taco, even if they have similar grievances.

For a prospective Del Taco franchisee, this clause has significant implications. It limits their legal options in case of a dispute with the franchisor. While individual legal action is still possible, the costs and complexities can be greater compared to being part of a class action. Therefore, it is crucial for potential franchisees to carefully consider this waiver and understand its potential impact on their rights and remedies under the franchise agreement.

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.