Will a Del Taco franchisee indemnify Del Taco for any costs incurred as a result of the franchisee's or their employees' actions or omissions, including those related to a finding of joint employer status?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
If Del Taco incurs any cost, loss, or damage as a result of any actions or omissions of Franchisee or Franchisee's employees, including any that relate to any party making a finding of any joint employer status, Franchisee will fully indemnify Del Taco for such loss.
GOVERNING LAW AND DISPUTE RESOLUTION.
The governing law and dispute resolution provisions of the Franchise Agreement (i.e., Section 17 of the Franchise Agreement) shall apply to this Agreement and all disputes and claims relating to or arising under this Agreement and the relationship of the parties hereto and are expressly incorporated herein by reference.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the franchisee is required to indemnify Del Taco for costs resulting from the franchisee's or their employees' actions or omissions. This includes situations where a third party finds Del Taco to be a joint employer with the franchisee. This obligation is outlined in the receipts section of the agreement.
Del Taco emphasizes that the franchisee is solely responsible for all employment decisions related to the restaurant. These decisions include hiring, firing, training, compliance with wage and hour laws, personnel policies, scheduling, benefits, recordkeeping, supervision, and discipline of employees. This responsibility remains with the franchisee regardless of whether they use Del Taco's platform or receive advice from Del Taco on these matters. The agreement specifies that personnel decisions made by the franchisee should not be considered decisions or actions of Del Taco.
The indemnification clause means that if Del Taco incurs costs, losses, or damages due to the franchisee's actions or omissions, the franchisee must cover these expenses. This includes any costs related to a finding of joint employer status. This provision is designed to protect Del Taco from liabilities arising from the franchisee's management of their employees and operations. Franchisees should be aware of this obligation and ensure they operate their business in compliance with all applicable laws and regulations to minimize the risk of incurring such costs.