Who pays for the required medical examination to determine permanent disability for a Del Taco franchisee?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
If Del Taco and Franchisee or Franchisee's representative disagree as to whether a person has a permanent disability, the existence of the permanent disability shall be determined by a licensed practicing physician selected by Del Taco upon examination of such person or, if such person refuses to be examined, then such person shall automatically be deemed permanently disabled for the purposes of this Section 12.8 as of the date of refusal.
Del Taco shall pay the cost of the required examination.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco will cover the cost of the required medical examination to determine permanent disability of a franchisee. This examination is conducted by a licensed physician selected by Del Taco if there is a disagreement between Del Taco and the franchisee (or their representative) regarding the franchisee's disability status.
The term "Permanent Disability" is defined in the franchise agreement as a physical, emotional, or mental condition that prevents the franchisee from fulfilling their obligations under the agreement for at least six consecutive months, with recovery within another six months being unlikely.
It is important to note that if the franchisee refuses to undergo the examination, they will automatically be deemed permanently disabled for the purposes of the transfer provisions in the franchise agreement. This clause ensures a clear process for determining disability and managing the transfer of the franchise in such circumstances, with Del Taco bearing the financial responsibility for the medical assessment.