factual

Can a Del Taco franchisee utilize the Ceridian Platform for purposes other than the operation of the Restaurant?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. PARTICIPATION. PROVIDED FRANCHISEE IS IN FULL COMPLIANCE WITH THE TERMS OF THIS AGREEMENT AND THE FRANCHISE AGREEMENT, DEL TACO SHALL DESIGNATE FRANCHISEE AS AN "AFFILIATE" UNDER THE MSA, THUS MAKING FRANCHISEE ELIGIBLE TO USE AND RECEIVE THE BENEFITS OF THE PLATFORM FROM CERIDIAN IN CONNECTION WITH THE OPERATION OF THE RESTAURANT. FRANCHISEE SHALL ENTER INTO SUCH AGREEMENT(S) AND ORDER FORM(S) AS MAY BE PRESCRIBED BY CERIDIAN AND APPROVED BY DEL TACO FOR FRANCHISEE'S USE OF THE PLATFORM (THE "PLATFORM USAGE AGREEMENT"). FRANCHISEE SHALL UTILIZE THE PLATFORM ONLY THROUGH AND FOR THE OPERATION OF THE RESTAURANT.

Source: Item 23 — RECEIPTS (FDD pages 59–325)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee's use of the Ceridian Platform is explicitly limited to the operation of their Del Taco restaurant. The agreement between Del Taco and the franchisee designates the franchisee as an affiliate under the Master Services Agreement (MSA) with Ceridian, making them eligible to use the platform. However, this eligibility is contingent upon the franchisee's full compliance with the terms of the franchise agreement and the agreement to participate in the Ceridian Platform.

The agreement specifies that the franchisee must enter into a Platform Usage Agreement with Ceridian, as approved by Del Taco, and that the franchisee "SHALL UTILIZE THE PLATFORM ONLY THROUGH AND FOR THE OPERATION OF THE RESTAURANT." This clause clearly restricts the use of the Ceridian Platform to activities directly related to running the Del Taco restaurant. Any other use of the platform would be a violation of the agreement.

This restriction has important implications for franchisees. It means they cannot use the Ceridian Platform for any other business ventures or personal purposes. The platform is specifically intended to assist Del Taco franchisees in performing certain human resource functions such as payroll, benefits, time and attendance, and scheduling, all in connection with the operation of their Del Taco restaurant. This ensures that the platform is used solely for its intended purpose, maintaining consistency and control within the Del Taco franchise system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.