What is the dependency for a Del Taco franchisee to be eligible to use the Ceridian Platform?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee's eligibility to use the Ceridian Platform is contingent upon being in full compliance with the terms of both the Ceridian Platform agreement and the Franchise Agreement. Del Taco will designate the franchisee as an "Affiliate" under the Master Services Agreement (MSA) with Ceridian, which makes the franchisee eligible to use the Ceridian Platform for restaurant operations. The franchisee must also enter into a Platform Usage Agreement prescribed by Ceridian and approved by Del Taco.
This means that a Del Taco franchisee must maintain good standing in all aspects of their franchise operation to access and utilize the Ceridian Platform. This includes adhering to all operational standards, payment schedules, and other requirements outlined in the Franchise Agreement. Failure to comply with these terms could result in the franchisee losing access to the Ceridian Platform, which offers services such as payroll, benefits, time and attendance, and other human resource functions.
Furthermore, the franchisee is required to comply with the Platform Usage Agreement and all rules and regulations set by Ceridian. In case of any conflict between the agreements, the Franchise Agreement takes precedence. This ensures that the franchisee's obligations to Del Taco remain the primary concern. The franchisee is also responsible for paying fees to Del Taco and acquiring necessary equipment to use the platform, including purchasing a Ceridian Time Clock.
Del Taco also has the right to collect fees owed to Ceridian from the franchisee and communicate with Ceridian on the franchisee's behalf. Del Taco can also designate an administrator to manage the platform on behalf of the franchisee, accessing the franchisee's computer system as necessary. However, Del Taco makes no warranties related to the operation or performance of the platform and is not liable for any issues arising from its use. The franchisee also cannot bring any claims against Ceridian related to the platform.