Is Del Taco considered the employer of the franchisee or the franchisee's employees under the Del Taco franchise agreement?

According to Del Taco's 2025 Franchise Disclosure Document, Del Taco is not considered the employer or joint employer of the franchisee or the franchisee's employees. The franchise agreement explicitly states that it is the intention of both parties that Del Taco not be deemed an employer or joint employer for any reason.

This distinction is crucial because it clarifies the legal and financial responsibilities of each party. As an independent contractor, the franchisee is responsible for all employment-related obligations, including wages, taxes, and compliance with labor laws. This arrangement shields Del Taco from potential liabilities arising from the franchisee's business operations and employment practices.

The franchise agreement further stipulates that the franchisee will indemnify Del Taco for any costs, losses, or damages incurred by Del Taco due to the actions or omissions of the franchisee or the franchisee's employees, including any findings of joint employer status. This indemnification clause reinforces the independent contractor relationship and protects Del Taco from financial repercussions related to the franchisee's business.

Prospective franchisees should understand that they are solely responsible for managing and operating their Del Taco restaurant, including all aspects of employment. This includes hiring, training, and supervising employees, as well as ensuring compliance with all applicable laws and regulations. Franchisees should consult with legal and financial professionals to fully understand their obligations as employers.