What is the effect of termination on the Del Taco franchisee's obligations to Ceridian?

According to the 2025 Del Taco Franchise Disclosure Document, in the event of termination of the Platform Usage Agreement, a franchisee remains liable for all obligations to Ceridian occurring prior to the termination and resulting from the termination. Additionally, the franchisee must return any and all property of Ceridian in the franchisee's possession or control within five days of termination. The franchisee must also comply with all post-termination obligations of the Program Usage Agreement.

This means that if a Del Taco franchisee's agreement is terminated, they are still responsible for any outstanding payments or other duties owed to Ceridian that were incurred before the termination date, as well as any costs directly resulting from the termination itself. This could include fees for services already rendered or penalties specified in the agreement with Ceridian.

Furthermore, the franchisee is obligated to promptly return any Ceridian-owned equipment or materials. This could include hardware, software, or documents provided by Ceridian for use with the platform. Failure to return these items within the specified timeframe could result in additional penalties or legal action. The franchisee must also adhere to any post-termination requirements outlined in their agreement with Ceridian, which may include restrictions on using similar services or disclosing confidential information.