What happens to the Del Taco franchisee's post-termination obligations of the Program Usage 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, if the Program Usage Agreement is terminated, the franchisee must comply with all post-termination obligations outlined in that agreement.
Specifically, the franchisee is required to immediately cease using or accessing the Platform. Additionally, the franchisee remains responsible for all obligations to Ceridian (the platform provider) that occurred before the termination and result from the termination itself. The franchisee must also return any property belonging to Ceridian within five days of termination.
These obligations ensure that Del Taco's interests and the integrity of its systems are protected even after a franchise relationship ends. Franchisees should carefully review the Program Usage Agreement to fully understand their responsibilities upon termination, as failure to comply could result in legal action or other penalties.