Is Del Taco liable for any act or omission by the franchisee in the conduct of the Restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
It is understood and agreed that nothing in this Agreement authorizes Franchisee to make any contract, agreement, warranty, or representation on Del Taco's behalf, or to incur any debt or other obligation in Del Taco's name; and that Del Taco shall in no event assume liability for, or be deemed liable hereunder as a result of, any such action; nor shall Del Taco be liable by reason of any act or omission by Franchisee in Franchisee's conduct of the Restaurant or for any claim or judgment arising therefrom against Franchisee or Del Taco.
Franchisee shall not have the authority, express or implied, to bind or obligate Del Taco in any way.
- 16.1.3 Indemnification.
Franchisee shall, to the fullest extent permissible under applicable law, indemnify and hold Del Taco and its affiliates, and each of Del Taco's respective officers, directors, employees, and agents harmless against any and all claims, obligations, and damages arising directly or indirectly from, as a result of, or in connection with this Agreement, the Restaurant, Franchisee's operation of the Restaurant, Franchisee and its employees' actions and inaction, or Franchisee's breach of this Agreement, including those alleged to be caused by Del Taco's negligence, as well as the costs, including attorneys' fees, costs, and expenses (and interest on such fees, costs, and expenses), of defending against them, unless (and then only to the extent that) the claims, obligations, and damages are determined to be caused solely by Del Taco's gross negligence or willful misconduct according to a final, unappealable ruling issued by a court or arbitrator with competent jurisdiction.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco is not liable for any act or omission by the franchisee in the conduct of the Restaurant. The franchise agreement specifies that the franchisee is an independent contractor and not an agent of Del Taco. This means the franchisee is responsible for the Restaurant's operations and any liabilities arising from those operations.
Del Taco's franchise agreement explicitly states that the franchisee is not authorized to make any agreements or incur any debt on Del Taco's behalf. Furthermore, Del Taco will not assume liability for any actions or omissions by the franchisee in the operation of the Restaurant, nor will Del Taco be liable for any claims or judgments against the franchisee or Del Taco resulting from those actions. The franchisee does not have the authority to bind or obligate Del Taco in any way.
The franchisee is required to indemnify and hold Del Taco harmless from any claims, obligations, and damages arising from the franchise agreement, the Restaurant's operation, or the franchisee's actions, including those allegedly caused by Del Taco's negligence. This indemnification extends to attorneys' fees and other costs associated with defending against such claims. However, this indemnification requirement does not apply to the extent that claims, obligations, and damages are determined to be caused solely by Del Taco's gross negligence or willful misconduct, as determined by a court or arbitrator.