Can Del Taco designate an administrator for the Ceridian Platform on behalf of the franchisee?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to Section 3.(2) above, Del Taco shall have the right to designate an individual or entity, which may be an employee of Del Taco, to serve as an administrator of the Platform on behalf of Franchisee and/or other franchisees of Del Taco.
The administrator shall have such access to Franchisee's computer system, including without limitation all files and data regarding Franchisee's use of the Platform as the administrator deems necessary to perform the functions thereof.
Del Taco shall have no fiduciary obligation to Franchisee and shall have the right to exercise its business judgement, as further described in Section 13 below, regarding the exercise of its rights described in this Section.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco has the right to designate an individual or entity to serve as an administrator of the Ceridian Platform on behalf of its franchisees. This administrator can be an employee of Del Taco.
The designated administrator will have access to the franchisee's computer system, including all files and data related to the franchisee's use of the Ceridian Platform, as deemed necessary by the administrator to perform their functions. However, Del Taco has no fiduciary obligation to the franchisee and can exercise its business judgment regarding its rights as described in the relevant section.
This arrangement means that Del Taco can oversee and manage the Ceridian Platform, which handles human resource functions like payroll and timekeeping, across all franchise locations. While this could streamline operations and ensure consistency, franchisees should be aware that Del Taco will have access to their system data and that Del Taco's business decisions regarding the platform are not subject to fiduciary duty to the franchisee.