Under what conditions will a statement, questionnaire, or acknowledgment signed by a Del Taco franchisee be ineffective in waiving claims under applicable state franchise law?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship will not waive claims under applicable state franchise law. This includes claims of fraud in the inducement or disclaiming reliance on statements made by Del Taco, its franchise sellers, or anyone acting on Del Taco's behalf. This provision overrides any other conflicting terms in any document related to the franchise agreement.
This protection ensures that franchisees retain their rights under state franchise laws, preventing Del Taco from using these documents to circumvent legal obligations. It specifically protects franchisees from unknowingly waiving their right to sue Del Taco for misrepresentation or fraud during the franchise sales process. This is a standard protection for franchisees, as franchise laws are designed to protect franchisees from deceptive or unfair practices by franchisors.
For prospective Del Taco franchisees, this means that any document they sign at the beginning of their franchise relationship cannot be used to prevent them from pursuing legal claims under state franchise law. This provides an added layer of security, ensuring that franchisees can hold Del Taco accountable for their representations and actions. Franchisees should still carefully review all documents and seek legal advice to fully understand their rights and obligations, but this provision offers reassurance that their legal rights are protected.