factual

Where must any judicial proceeding relating to the Del Taco franchise agreement be filed?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

Choice of Forum. Any judicial proceeding relating to this Agreement shall be filed in the state or federal court located in the jurisdiction in which Del Taco's corporate offices are located at the time the proceeding is filed. Licensee waives any right to challenge the existence of personal jurisdiction in that state or federal court and the convenience of the forum.

Source: Item 23 — RECEIPTS (FDD pages 59–325)

What This Means (2025 FDD)

According to the 2025 Del Taco Franchise Disclosure Document, any judicial proceeding related to the franchise agreement must be filed in either the state or federal court. The specific court must be located in the jurisdiction where Del Taco's corporate offices are located at the time the proceeding is initiated.

This means that a franchisee may be required to litigate issues related to their franchise agreement in a location potentially far from their own business or residence, depending on where Del Taco's corporate offices are situated. The FDD also states that the franchisee waives any right to challenge the personal jurisdiction of that state or federal court, as well as the convenience of the forum.

This clause is fairly standard in franchise agreements, as it allows Del Taco to manage legal disputes in a location convenient for them. However, it's crucial for prospective franchisees to consider the potential costs and logistical challenges of engaging in legal proceedings in a distant jurisdiction. Franchisees should factor in potential travel expenses, the cost of hiring local counsel, and the general inconvenience of managing a legal case far from home.

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.