Is a Del Taco franchisee allowed to hire a third-party management company to operate the Restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.30 No Third-Party Management.
The Restaurant shall be operated under the control and supervision of Franchisee, its Operating Principal, the Restaurant Manager or another manager hired by and employed by Franchisee and approved by Del Taco.
Franchisee shall not hire or retain a management company, manager (other than an employee manager trained and approved by Del Taco), or third party to
undertake any of the management or operational functions of the Restaurant. Franchisee shall not be managed or otherwise controlled by any individual not identified as its Operating Principal or owner.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from hiring a third-party management company to handle the restaurant's operations. The restaurant must be directly managed by the franchisee, their designated Operating Principal, a Restaurant Manager, or another manager hired and employed by the franchisee, all of whom must be approved by Del Taco.
This restriction ensures that Del Taco maintains consistent brand standards and operational control across all franchise locations. By requiring direct oversight from approved individuals, Del Taco aims to protect the quality of service and products offered at each restaurant. This policy helps to ensure that the franchisee is actively involved in the business and adheres to the franchisor's established systems and procedures.
For a prospective franchisee, this means they or a qualified, approved manager must be actively involved in the day-to-day operations of the Del Taco restaurant. They cannot delegate the management responsibilities to an outside company. This requirement necessitates a significant time commitment and hands-on approach from the franchisee or their designated representatives. It is important for potential franchisees to assess their ability to meet these management requirements before investing in a Del Taco franchise.