Does the Del Taco franchise agreement authorize me to make any agreements on Del Taco's behalf?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.1.2 No Agency.
Franchisee shall not act or attempt to act or represent itself, directly or by implication, as an agent of Del Taco.
It is understood and agreed that nothing in this Agreement authorizes Franchisee to make any contract, agreement, warranty, or representation on Del Taco's behalf, or to incur any debt or other obligation in Del Taco's name; and that Del Taco shall in no event assume liability for, or be deemed liable hereunder as a result of, any such action; nor shall Del Taco be liable by reason of any act or omission by Franchisee in Franchisee's conduct of the Restaurant or for any claim or judgment arising therefrom against Franchisee or Del Taco.
Franchisee shall not have the authority, express or implied, to bind or obligate Del Taco in any way.
- 16.1.3 Indemnification.
Franchisee shall, to the fullest extent permissible under applicable law, indemnify and hold Del Taco and its affiliates, and each of Del Taco's respective officers, directors, employees, and agents harmless against any and all claims, obligations, and damages arising directly or indirectly from, as a result of, or in connection with this Agreement, the Restaurant, Franchisee's operation of the Restaurant, Franchisee and its employees' actions and inaction, or Franchisee's breach of this Agreement, including those alleged to be caused by Del Taco's negligence, as well as the costs, including attorneys' fees, costs, and expenses (and interest on such fees, costs, and expenses), of defending against them, unless (and then only to the extent that) the claims, obligations, and damages are determined to be caused solely by Del Taco's gross negligence or willful misconduct according to a final, unappealable ruling issued by a court or arbitrator with competent jurisdiction.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, as a franchisee, you are explicitly prohibited from acting as an agent of Del Taco or making any agreements on its behalf. The franchise agreement states that nothing within it authorizes you to enter into any contract, agreement, warranty, or representation on Del Taco's behalf, nor can you incur any debt or obligation in Del Taco's name. Del Taco will not assume liability for any actions you take in this regard.
This means that you, as the franchisee, operate as an independent contractor and are responsible for managing your Del Taco restaurant's day-to-day operations without the authority to bind Del Taco to any external obligations. You cannot represent yourself as having the power to make decisions or agreements that would legally commit Del Taco. This protects Del Taco from potential liabilities arising from unauthorized actions by its franchisees.
Furthermore, you are required to indemnify and hold Del Taco harmless from any claims, obligations, and damages that arise from your operation of the restaurant or any breach of the franchise agreement. This includes legal costs and attorney's fees, unless the damages are solely caused by Del Taco's gross negligence or willful misconduct. This underscores the importance of adhering strictly to the franchise agreement and operating the restaurant responsibly to avoid potential legal repercussions and financial liabilities.