Does Del Taco take responsibility for personnel decisions, including hiring, firing, disciplining, compensation, benefits, and scheduling, made by the franchisee?
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 entirely responsible for all employment decisions within their restaurant. This includes, but is not limited to, hiring, firing, training, ensuring compliance with wage and hour laws, setting personnel policies, scheduling, managing benefits, maintaining records, supervising employees, and handling disciplinary actions.
Del Taco explicitly states that all personnel decisions, including hiring, firing, disciplining, compensation, benefits, and scheduling, must be made by the franchisee without influence or advice from Del Taco. These decisions are not to be considered actions of Del Taco. This arrangement is intended to ensure that Del Taco is not considered a joint employer with the franchisee for any reason.
The franchise agreement emphasizes that if Del Taco incurs any costs, losses, or damages due to the franchisee's actions or omissions related to employment matters, including any findings of joint employer status, the franchisee is obligated to fully indemnify Del Taco for such losses. This underscores the importance of the franchisee's independent management of employment-related issues and the potential financial responsibility they bear for any missteps in this area.
This type of arrangement is common in franchising, as franchisors typically want to avoid being held liable for the employment practices of their franchisees. Prospective Del Taco franchisees should understand that they will have full control over their employees but also bear the full responsibility for all employment-related legal compliance and potential liabilities.