Must a Del Taco franchisee comply with all post-termination obligations of the Program Usage Agreement?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- d) Franchisee's Requirements upon Termination. In the event of a termination under this Section for any reason, Franchisee shall:
- i. Immediately cease to use or access the Platform.
- ii. Remain liable for all obligations to Ceridian occurring prior to the termination and resulting from the termination.
- iii. Return to Ceridian, within five (5) days of termination, any and all property of Ceridian in Franchisee's possession or control.
- iv. Comply with all its post-termination obligations of the Program Usage Agreement.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, a franchisee must comply with all post-termination obligations outlined in the Program Usage Agreement. Specifically, in the event of termination of the contract for any reason, the franchisee is required to adhere to several stipulations.
These stipulations include immediately ceasing all use of or access to the Platform, remaining liable for all obligations to Ceridian (the Platform provider) that occurred prior to the termination and resulting from the termination, and returning to Ceridian, within five days of termination, any and all property of Ceridian in the franchisee's possession or control.
This requirement ensures that upon termination, the franchisee promptly discontinues use of the platform, settles any outstanding financial responsibilities, and returns any proprietary materials, thereby protecting Del Taco's and Ceridian's interests and maintaining the integrity of their systems and data.