Who is responsible for employment decisions at a Del Taco restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Franchisee's use of the Platform or 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 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the franchisee is solely responsible for all employment decisions at their Del Taco restaurant. This includes all aspects of employment, such as hiring, firing, training, compliance with wage and hour requirements, personnel policies, scheduling, benefits, recordkeeping, supervision, and discipline of employees. This responsibility remains with the franchisee regardless of whether they use Del Taco's platform or receive advice from Del Taco on these matters.
This means that as a Del Taco franchisee, you have complete control over the staffing and management of your restaurant's employees. You are not only empowered but also obligated to make all personnel decisions independently. Del Taco explicitly states that these decisions should be made without any influence or advice from them, ensuring that the franchisee is seen as the sole employer.
This arrangement is designed to prevent Del Taco from being considered a joint employer with the franchisee. The agreement emphasizes that personnel decisions made by the franchisee are not to be deemed decisions or actions of Del Taco. This distinction is crucial for liability purposes, as the franchisee is responsible for indemnifying Del Taco for any costs, losses, or damages resulting from the franchisee's or their employees' actions or omissions, including those that could lead to a finding of joint employer status.
For a prospective franchisee, this highlights the importance of understanding employment laws and best practices. While you have autonomy in managing your staff, you also bear the full responsibility for ensuring compliance with all applicable regulations. This includes maintaining accurate records, adhering to wage and hour laws, and implementing fair personnel policies. It is advisable to seek legal counsel and HR support to navigate these responsibilities effectively.