Who is released and discharged from liabilities, obligations, or claims by the franchisee in the general release within the Del Taco Franchise Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee, on behalf of itself and its subsidiaries, affiliates, heirs, successors and assigns, hereby releases and discharges any and all liabilities, obligations or claims, whether known or unknown, including without limitation, any claimed violation or breach of the Franchise Agreement or Federal or state laws, including franchise investment laws, against Del Taco LLC ("Del Taco"), including its current and former parents, officers, directors, limited liability company managers, employees, subsidiaries or affiliates, and any and all of its respective past and present representatives. The Franchisee realizes the facts as presently known or understood to exist with respect to any known or unknown claims it may have against Del Taco may, in fact, be either incorrect or incomplete, or both. Notwithstanding such possibility, the Franchisee freely enters into this Agreement and assumes all risks of any such possibility and waives any rights whatsoever to attack the validity and finality of this Agreement even if the present knowledge and understanding of the facts on the part of the Franchisee is in any way incorrect. The Franchisee expressly waives any and all rights and benefits against Del Taco conferred upon themselves by the provisions of Section 1542 of the California Civil Code. Section 1542 of the California Civil Code reads as follows:
A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
Except in connection with a negotiated settlement of a bona fide dispute in which the person giving the release or waiver is represented by independent legal counsel, the foregoing general release does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, or the rules adopted thereunder.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, the franchisee, along with its subsidiaries, affiliates, heirs, successors, and assigns, releases and discharges Del Taco LLC from all liabilities, obligations, or claims. This release extends to any claimed violation or breach of the Franchise Agreement, as well as federal or state laws, including franchise investment laws.
Specifically, the release covers Del Taco and its current and former parents, officers, directors, limited liability company managers, employees, subsidiaries, or affiliates, and any and all of its respective past and present representatives. The franchisee acknowledges that their understanding of the facts related to any claims against Del Taco may be incomplete or incorrect but still agrees to the release, assuming all associated risks.
The franchisee also waives rights and benefits conferred by Section 1542 of the California Civil Code, which typically protects against releasing claims that are unknown at the time of the release. However, there is an exception: the general release does not apply to claims arising under the Washington Franchise Investment Protection Act (RCW 19.100) or its rules, unless it's part of a negotiated settlement where the franchisee has independent legal counsel.
This general release is a significant aspect of the Del Taco Franchise Agreement. It means that a franchisee gives up the right to sue Del Taco for many potential issues, including unknown claims. The exception for the Washington Franchise Investment Protection Act provides some limited protection for franchisees in Washington state, ensuring they do not unknowingly waive rights under that specific law without legal representation.