Who is responsible for the terms and conditions of employment of personnel at a Del Taco franchise?
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 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 42)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the franchisee is solely responsible for all employment decisions and functions within their restaurant. This includes, but is not limited to, hiring, firing, training, compliance with wage and hour requirements, creating personnel policies, scheduling, providing benefits, recordkeeping, supervision, and employee discipline. This responsibility remains with the franchisee regardless of whether they receive advice or guidance from Del Taco on these matters.
Del Taco emphasizes that all personnel decisions, including hiring, firing, disciplining, compensation, benefits, and scheduling, must be made independently by the franchisee, without influence or advice from Del Taco. These decisions and actions are not considered decisions or actions of Del Taco itself. This is further reinforced by stating that Del Taco will not be deemed a joint employer with the franchisee for any reason.
This arrangement protects Del Taco from potential liabilities related to the franchisee's employment practices. The franchisee is also obligated to indemnify Del Taco for any costs, losses, or damages incurred by Del Taco due to the franchisee's actions or omissions, including those that might lead to a finding of joint employer status. This underscores the importance for franchisees to maintain thorough and legally compliant employment practices.
For a prospective Del Taco franchisee, this means they must be prepared to handle all aspects of employment law and human resources management. They should seek legal counsel and HR expertise to ensure they are compliant with all applicable laws and regulations. This also means that the franchisee has the autonomy to make employment-related decisions that best suit their business needs, within the bounds of the law, without direct interference from Del Taco.