Who must supervise all aspects of the Franchised Business for a Del Taco franchise?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 5.4.1 Initial Training. Prior to the opening of the Restaurant, the Franchisee's Principal Trainees, and such other employees of Franchisee who Del Taco shall have the right to approve, shall attend and successfully complete, to Del Taco's satisfaction, the initial training program offered by Del Taco. All aspects of the Franchised Business shall be conducted under the management and supervision of the Operating Principal. In addition, the daily operations of the Restaurant shall be supervised under the active full-time management of the Operating Principal or Restaurant Manager who has successfully completed (to Del Taco's satisfaction) Del Taco's initial training program.
- 5.4.2 Operating Principal and Restaurant Manager. If the Operating Principal or the Restaurant Manager cease active management of or employment at the Restaurant, Franchisee shall enroll a qualified replacement (who shall be reasonably acceptable to Del Taco) in Del Taco's initial training program not more than thirty (30) days after the cessation of the former person's full-time employment and/or management responsibilities. The replacement shall attend and successfully complete the basic management training program, to Del Taco's reasonable satisfaction, as soon as it is practical to do so. Franchisee shall pay Del Taco's then-current training fees and per diem expenses.
- 5.4.3 Refresher Training / Annual Conventions. If Franchisee is in default of this Agreement, the Franchisee's Principal Trainees may also be required to attend such refresher courses, seminars, and other training programs as Del Taco may reasonably specify from time to time, including up to twenty (20) days of refresher programs each year during the term of the Agreement. In addition, such of the Franchisee's Principal Trainees as Del Taco may require, may be required to attend Del Taco's annual convention for up to three (3) days per year.
- 5.4.4 Pre-Opening Crew Training. If the Restaurant is one of the first two Del Taco restaurants that Franchisee or Franchisee's affiliate opens, after Franchisee or Franchisee's affiliate has hired the crew, Del Taco may provide Franchisee with such assistance as Del Taco deems advisable in training the crew in opening the Restaurant. Such assistance will be for a duration of two weeks before the opening of Franchisee's or Franchisee's affiliate's first and second Del Taco restaurant. Franchisee shall be responsible for the crew training.
- 5.4.5 Continuing Management and Crew Training. After the Restaurant has opened, Del Taco may, at its option, assist Franchisee in the training of management and crew to promote the proper use of the System. Franchisee at all times shall maintain at least one certified Restaurant Manager in the Restaurant and shall have a combination of nine additional Shift Managers trained and certified by Del Taco for the Restaurant. Franchisee shall have sole authority and discretion regarding all employment matters, including hiring, firing, discipline, compensation, benefits, and scheduling. Franchisee is solely responsible for ensuring its managers and employees are adequately trained and supervised. Del Taco may make training available to all future management employees of Franchisee. Every future manager must complete, to Del Taco's satisfaction, the pre-opening management training described in Section 5.4 above, and receive certification by Del Taco.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the Operating Principal is responsible for the management and supervision of all aspects of the franchised Del Taco business. Additionally, the daily operations of the restaurant must be supervised under the active, full-time management of either the Operating Principal or a Restaurant Manager. Both the Operating Principal and the Restaurant Manager must successfully complete Del Taco's initial training program to the company's satisfaction.
If either the Operating Principal or the Restaurant Manager leaves their position, the franchisee is required to enroll a qualified replacement in Del Taco's initial training program within thirty days of their departure. This replacement must also successfully complete the training program. The franchisee is responsible for paying Del Taco's then-current training fees and any per diem expenses associated with the replacement's training.
The Operating Principal must participate personally in the direct operation of the restaurant. To qualify as an Operating Principal, an individual must have at least five years of management experience in a quick-service restaurant, or two years if the franchisee already operates a Del Taco Restaurant. They must also complete Del Taco's required training program, be approved by Del Taco to supervise the restaurant's day-to-day operations, own at least 10% of the equity interest in the franchisee if the franchisee is a business entity, and live within a three-hour drive of the restaurant.
Del Taco also requires the franchisee to designate a Restaurant Manager who is responsible for the direct oversight and management of the day-to-day operations and personnel at the Restaurant. The Restaurant Manager and the Operating Principal can be the same person if they are qualified and approved by Del Taco to perform both roles. Shift Managers are also designated to oversee and manage day-to-day shift operations under the supervision of the Restaurant Manager and Operating Principal.