Under what conditions is a Del Taco franchisee required to indemnify Del Taco?

According to Del Taco's 2025 Franchise Disclosure Document, a franchisee is required to indemnify Del Taco if Del Taco incurs any cost, loss, or damage due to the actions or omissions of the franchisee or the franchisee's employees. This includes situations where a third party finds that Del Taco could be considered a joint employer with the franchisee or the franchisee's employees. In such cases, the franchisee must fully indemnify Del Taco for any resulting losses.

This means that if a franchisee's actions or the actions of their employees lead to any financial or legal repercussions for Del Taco, the franchisee is responsible for covering those costs. This could include legal fees, settlements, or other damages. The FDD explicitly states that it is the intention of both parties that Del Taco is not considered an employer or joint employer of the franchisee or their employees.

This requirement protects Del Taco from liabilities arising from the franchisee's business operations and ensures that the franchisee is accountable for their conduct and the conduct of their employees. Franchisees should ensure they operate their business in compliance with all applicable laws and regulations and maintain appropriate employment practices to minimize the risk of actions that could trigger the indemnification clause.