What must a Del Taco franchisee do immediately upon termination of the 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 Del Taco's 2025 Franchise Disclosure Document, a franchisee has specific requirements upon termination of their agreement related to the Platform Usage Agreement. In the event of termination for any reason, the franchisee must immediately cease using or accessing the Platform. Additionally, the franchisee remains responsible for all obligations to Ceridian (a third-party platform provider) that occurred before the termination and result from the termination itself.
Furthermore, within five days of termination, the franchisee is required to return any and all property of Ceridian that is in their possession or control. Finally, the franchisee must comply with all post-termination obligations outlined in the Program Usage Agreement.
These stipulations ensure a clean break in the relationship and protect the interests of both Del Taco and its third-party vendors. Prospective franchisees should carefully review the Program Usage Agreement to fully understand their responsibilities upon termination, as failure to comply could result in further legal or financial repercussions.