Is Del Taco considered a joint employer with its franchisees?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
NO JOINT EMPLOYMENT.
Franchisee is solely responsible for all employment decisions and functions of the Restaurant including those related to hiring, firing, training, compliance with wage and hour requirements, personnel policies, scheduling, benefits, recordkeeping, supervision, and discipline of employees, regardless of Franchisee's use of the Platform or whether Franchisee receives advice from Del Taco on these subjects.
Franchisee acknowledges and agrees that all personnel decisions, including hiring, firing, disciplining, compensation, benefits, and scheduling, shall be made by Franchisee, without any influence or advice from Del Taco, and such decisions and actions shall not be, nor be deemed to be, a decision or action of Del Taco.
Further, it is the intention of the parties to this Agreement that Del Taco shall not be deemed a joint employer with Franchisee for any reason.
If Del Taco incurs any cost, loss, or damage as a result of any actions or omissions of Franchisee or Franchisee's employees, including any that relate to any party making a finding of any joint employer status, Franchisee will fully indemnify Del Taco for such loss.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, Del Taco is not considered a joint employer with its franchisees. The FDD states that the franchisee is solely responsible for all employment decisions related to the restaurant. This includes hiring, firing, training, compliance with wage and hour requirements, personnel policies, scheduling, benefits, recordkeeping, supervision, and discipline of employees. This responsibility remains with the franchisee regardless of whether they use Del Taco's platform or receive advice from Del Taco on these subjects.
The agreement emphasizes that all personnel decisions, including hiring, firing, disciplining, compensation, benefits, and scheduling, must be made by the franchisee without influence or advice from Del Taco. These decisions and actions are not to be considered decisions or actions of Del Taco. The intention of both parties is that Del Taco will not be deemed a joint employer with the franchisee for any reason.
The franchise agreement also includes a clause to protect Del Taco from any costs, losses, or damages resulting from the franchisee's actions or omissions, including those related to any finding of joint employer status. The franchisee is obligated to fully indemnify Del Taco for any such losses. This provision underscores the importance of the franchisee's independent management of employment matters and the allocation of liability in case of any employment-related issues.