Is a Del Taco franchisee solely responsible for hiring and firing employees?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall have sole authority and discretion regarding all employment matters, including hiring, firing, discipline, compensation, benefits, and scheduling.
Franchisee is solely responsible for ensuring its managers and employees are adequately trained and supervised.
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 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 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 42)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees have sole authority over employment decisions at their restaurants. Specifically, the FDD states that the franchisee is responsible for all employment decisions, including hiring and firing. This extends to training, compliance with wage and hour laws, personnel policies, scheduling, benefits, recordkeeping, supervision, and discipline of employees.
This means that as a Del Taco franchisee, you have complete control over staffing matters at your location. Del Taco will not be considered a joint employer with the franchisee. The decisions you make regarding your employees are your responsibility, without influence or advice from Del Taco.
This independence also carries responsibility. The franchisee must indemnify Del Taco for any costs, losses, or damages resulting from the franchisee's or their employees' actions or omissions, including those that lead to a finding of joint employer status. This underscores the importance of adhering to all labor laws and maintaining sound employment practices as a Del Taco franchisee.