factual

What agreement(s) must a Del Taco franchisee enter into for using the Ceridian Platform?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

among others, payroll, benefits, time and attendance, scheduling, compensation management, performance management, document management, recruiting, dashboards, succession planning, unemployment compensation, employment/salary verification, and education.

WHEREAS, Del Taco and the Franchisee have entered into the Franchise Agreements listed on Exhibit A to this Amendment (the "Franchise Agreements") for the locations specified on Exhibit A (the "Units").

WHEREAS, Del Taco wishes to offer to Franchisee and Franchisee wishes to receive the opportunity to use and receive the benefits of the Platform from Ceridian and to obtain the favorable terms relating thereto and contained in the MSA.

In consideration of the mutual covenants contained herein, the Company and Franchisee agree as follows:

    1. PARTICIPATION. PROVIDED FRANCHISEE IS IN FULL COMPLIANCE WITH THE TERMS OF THIS AGREEMENT AND THE FRANCHISE AGREEMENT, DEL TACO SHALL DESIGNATE FRANCHISEE AS AN "AFFILIATE" UNDER THE MSA, THUS MAKING FRANCHISEE ELIGIBLE TO USE AND RECEIVE THE BENEFITS OF THE PLATFORM FROM CERIDIAN IN CONNECTION WITH THE OPERATION OF THE RESTAURANT. FRANCHISEE SHALL ENTER INTO SUCH AGREEMENT(S) AND ORDER FORM(S) AS MAY BE PRESCRIBED BY CERIDIAN AND APPROVED BY DEL TACO FOR FRANCHISEE'S USE OF THE PLATFORM (THE "PLATFORM USAGE AGREEMENT"). FRANCHISEE SHALL UTILIZE THE PLATFORM ONLY THROUGH AND FOR THE OPERATION OF THE RESTAURANT.
    1. COMPLIANCE WITH THIS AGREEMENT, FRANCHISE AGREEMENT AND PLATFORM USAGE AGREEMENT. FRANCHISEE SHALL AT ALL TIMES COMPLY WITH THIS AGREEMENT, THE FRANCHISE AGREEMENT, THE PLATFORM USAGE AGREEMENT AND ALL RULES, REGULATIONS, STANDARDS, SPECIFICATIONS AND PROCEDURES DESIGNATED FROM TIME TO TIME BY CERIDIAN IN CONNECTION WITH FRANCHISEE'S USE OF THE PLATFORM, INCLUDING WITHOUT LIMITATION THE CERIDIAN TIME CLOCK AND ALL APPLICATIONS. IN THE EVENT OF A CONFLICT BETWEEN THIS AGREEMENT OR THE FRANCHISE AGREEMENT AND THE PLATFORM USAGE AGREEMENT OR CERIDIAN'S RULES, REGULATIONS, STANDARDS, SPECIFICATIONS OR PROCEDURES WITH RESPECT TO THE PLATFORM, THIS AGREEMENT AND THE FRANCHISE AGREEMENT SHALL CONTROL.

    1. DEL TACO PERFORMANCE. Del Taco shall have the right, but not the obligation, to (1) collect any and all fees owing from Franchisee to Ceridian, for transmittal to Ceridian or its designees on behalf of Franchisee, and (2) communicate with Ceridian on behalf of Franchisee regarding the Platform and the Program Usage Agreement. With respect to Section 3.(2) above, Del Taco shall have the right to designate an individual or entity, which may be an employee of Del Taco, to serve as an administrator of the Platform on behalf of Franchisee and/or other franchisees of Del Taco. The administrator shall have such access to Franchisee's computer system, including without limitation all files and data regarding Franchisee's use of the Platform as the administrator deems necessary to perform the functions thereof. Del Taco shall have no fiduciary obligation to Franchisee and shall have the right to exercise its business judgement, as further described in Section 13 below, regarding the exercise of its rights described in this Section.
    1. FRANCHISEE PERFORMANCE. Franchisee shall pay such fees to Del Taco in such manner as Del Taco may prescribe, and purchase, lease or otherwise acquire the right to use such equipment, hardware, software and services as Del Taco may prescribe from time to time in order to use the Platform. Franchisee acknowledges and agrees that, as of the Effective Date, such fees include, without limitation, the following:
      1. Franchisee shall pay a monthly fee of One Hundred and Nine Dollars and Seventy-Five Cents ($109.75).
      1. Franchisee shall purchase from Del Taco a Ceridian Time Clock (wall mounted).

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

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee must enter into an agreement to participate in the Ceridian Platform to utilize Ceridian's services. Specifically, the franchisee must enter into an agreement and order forms prescribed by Ceridian and approved by Del Taco, known as the "Platform Usage Agreement." This agreement allows the franchisee to use the Ceridian Platform for restaurant operations, provided they are compliant with the terms of the franchise agreement and the participation agreement.

This requirement means that a Del Taco franchisee's ability to use the Ceridian Platform is contingent upon maintaining full compliance with both the franchise agreement and the Platform Usage Agreement. The franchisee is also obligated to adhere to all rules, regulations, standards, specifications, and procedures designated by Ceridian. In case of any conflict between the franchise agreement and the Platform Usage Agreement, the franchise agreement takes precedence.

The franchisee is also responsible for certain fees and purchases related to the Ceridian Platform. These include a monthly fee of $109.75, the purchase of a Ceridian Time Clock for $2,997.50, and an annual maintenance/subscription fee of $577.50. Additionally, the franchisee must pay a reasonable installation fee for the Ceridian Time Clock. These costs highlight the financial commitments a franchisee must make to utilize the platform.

Del Taco does not provide any warranties related to the operation of the platform or Ceridian's performance. The franchisee also cannot initiate any claim, action, or dispute against Ceridian. Del Taco retains the right, but not the obligation, to bring, initiate, and resolve any claim, action, or dispute between franchisee and Ceridian. The agreement to participate in the Ceridian Platform commences on the effective date and continues until terminated, with specific conditions outlined for termination, including breaches of contract or termination of 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.