Is a Del Taco franchisee solely responsible for all employment decisions at the Restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is solely responsible for all employment decisions and functions of the Restaurant including those related to hiring, firing, training, compliance with wage and hour requirements, personnel policies, scheduling, benefits, recordkeeping, supervision, and discipline of employees, regardless of Franchisee's use of the Platform or whether Franchisee receives advice from Del Taco on these subjects.
Franchisee acknowledges and agrees that all personnel decisions, including hiring, firing, disciplining, compensation, benefits, and scheduling, shall be made by Franchisee, without any influence or advice from Del Taco, and such decisions and actions shall not be, nor be deemed to be, a decision or action of Del Taco.
Further, it is the intention of the parties to this Agreement that Del Taco shall not be deemed a joint employer with Franchisee for any reason.
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.
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 indeed solely responsible for all employment decisions within their restaurant. This includes, but is not limited to, hiring, firing, training, ensuring compliance with wage and hour laws, setting personnel policies, scheduling, managing benefits, recordkeeping, supervision, and employee discipline. This responsibility remains with the franchisee, irrespective of whether they utilize any platforms provided by Del Taco or receive advice from Del Taco on these matters.
This arrangement is further reinforced by the explicit agreement that all personnel decisions, encompassing hiring, termination, disciplinary actions, compensation, benefits, and scheduling, are to be made exclusively by the franchisee. Del Taco maintains that it will not exert any influence or provide advice on these decisions, and such actions by the franchisee will not be considered decisions or actions of Del Taco itself. The agreement clearly states that it is the intention of both parties that Del Taco should not be considered a joint employer with the franchisee for any reason.
This has significant implications for prospective franchisees. It means that while benefiting from the established Del Taco brand and system, the franchisee bears the full responsibility and liability for all employment-related matters. Should any costs, losses, or damages arise due to the actions or omissions of the franchisee or their employees, including any findings of joint employer status, the franchisee is obligated to fully indemnify Del Taco for such losses. This underscores the importance of franchisees having a strong understanding of employment law and best practices in human resources management.
In essence, while Del Taco provides the franchise system and brand, the franchisee operates as an independent employer. This independence offers the franchisee autonomy in managing their workforce but also places the onus of compliance and risk management squarely on their shoulders. Prospective franchisees should carefully consider the implications of this arrangement and ensure they are prepared to handle all aspects of employment within their Del Taco restaurant.