Is the Del Taco buyer obligated to hire the seller's employees?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Buyer will not be obligated to hire Seller's employees, and Buyer will tender "at will" employment to those of Seller's former employees that Buyer elects to hire, effective as soon as feasible after the applicable Closing.
Buyer will be responsible for and assume any and all liability relating to post-Closing employment of any of the employees at the Locations hired by Buyer.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a buyer is not obligated to hire the seller's employees. However, if the buyer chooses to hire any of the seller's former employees, they must tender "at will" employment, effective as soon as feasible after the closing. This means that the employees can be terminated at any time, for any reason not prohibited by law.
The buyer assumes all liabilities related to the post-closing employment of any employees they hire at the Del Taco locations. This includes responsibility for all employment decisions and functions of the restaurant, such as hiring, firing, training, compliance with wage and hour requirements, personnel policies, scheduling, benefits, recordkeeping, supervision, and discipline of employees.
Del Taco maintains that it is not considered a joint employer with the franchisee for any reason. Therefore, the franchisee is solely responsible for all employment-related matters. If Del Taco incurs any costs due to the actions or omissions of the franchisee or their employees, the franchisee must indemnify Del Taco for such losses, including those related to any finding of joint employer status.