Under the Del Taco agreement, is the Developer allowed to represent themselves as an agent of Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement does not in any way create the relationship of principal and agent between Del Taco and the Developer.
The Developer shall not act or attempt to act or represent itself, directly or by implication, as an agent of Del Taco or in any manner assume or create or attempt to assume or create any obligation on behalf of or in the name of Del Taco nor shall the Developer act or represent itself as an affiliate of any other authorized franchisee of Del Taco.
The Developer shall represent and conduct itself as an independent contractor of Del Taco.
The Developer shall not have the authority, express or implied, to bind or obligate Del Taco in any way.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the agreement explicitly states that the Developer cannot act or represent themselves as an agent of Del Taco. The agreement clarifies that the relationship between Del Taco and the Developer is not that of principal and agent. This means the Developer does not have the authority to create any obligations on behalf of Del Taco.
This provision ensures that the Developer operates as an independent contractor. The Developer must conduct business and represent themselves as such, making it clear that their business is independently owned and operated, separate from Del Taco's direct control. This distinction is important for liability and operational autonomy.
This restriction protects Del Taco from potential liabilities or obligations that could arise if the Developer acted as its agent. It also maintains a clear separation between the franchisor and franchisee, reinforcing the independent nature of the Developer's business. Prospective developers should understand this limitation and ensure their business operations reflect this independent contractor status.