Does Del Taco assume liability for the actions of a Del Taco franchisee in the operation of their restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
actor. At all times during the term of this Agreement and any extensions hereof, Franchisee shall hold itself out to the public as an independent contractor operating the business pursuant to a franchise from Del Taco.
- 16.1.2 No Agency. Franchisee shall not act or attempt to act or represent itself, directly or by implication, as an agent of Del Taco. It is understood and agreed that nothing in this Agreement authorizes Franchisee to make any contract, agreement, warranty, or representation on Del Taco's behalf, or to incur any debt or other obligation in Del Taco's name; and that Del Taco shall in no event assume liability for, or be deemed liable hereunder as a result of, any such action; nor shall Del Taco be liable by reason of any act or omission by Franchisee in Franchisee's conduct of the Restaurant or for any claim or judgment arising therefrom against Franchisee or Del Taco. Franchisee shall not have the authority, express or implied, to bind or obligate Del Taco in any way.
- 16.1.3 Indemnification. Franchisee shall, to the fullest extent permissible under applicable law, indemnify and hold Del Taco and its affiliates, and each of Del Taco's respective officers, directors, employees, and agents harmless against any and all claims, obligations, and damages arising directly or indirectly from, as a result of, or in connection with this Agreement, the Restaurant, Franchisee's operation of the Restaurant, Franchisee and its employees' actions and inaction, or Franchisee's breach of this Agreement, including those alleged to be caused by Del Taco's negligence, as well as the costs, including attorneys' fees, costs, and expenses (and interest on such fees, costs, and expenses), of defending against them, unless (and then only to the extent that) the claim
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, Del Taco does not assume liability for the actions of a franchisee in the operation of their restaurant. The agreement explicitly states that the franchisee is an independent contractor and is not authorized to make any agreements or incur any debt on Del Taco's behalf.
Del Taco is not liable for any actions or omissions by the franchisee in the conduct of the restaurant or for any claims or judgments arising from those actions. The franchisee is required to indemnify and hold Del Taco harmless against any claims, obligations, and damages arising from the franchise agreement, the restaurant's operation, or the franchisee's actions, including those allegedly caused by Del Taco's negligence. This indemnification extends to covering Del Taco's legal fees and expenses.
This arrangement is typical in franchising, where franchisees operate as independent entities. The franchisee's indemnification obligations survive the termination or expiration of the franchise agreement, meaning the franchisee remains responsible for any liabilities even after the agreement ends. The franchisee must also comply with all applicable laws and regulations and obtain necessary permits and licenses for the restaurant's operation.