What warranties does Del Taco make regarding the Ceridian platform?

According to the 2025 Del Taco Franchise Disclosure Document, Del Taco makes no warranties regarding the Ceridian platform. Specifically, Del Taco disclaims all warranties related to the operation of the platform, Ceridian's performance, merchantability, fitness for a particular purpose, and non-infringement. This means that franchisees bear the risk of any issues or failures with the Ceridian platform.

This lack of warranty is a significant consideration for prospective franchisees. The Ceridian platform is essential for timekeeping, and any malfunctions or inaccuracies could directly impact labor costs and operational efficiency. Franchisees should be prepared to address any problems with the platform independently, as Del Taco offers no guarantees regarding its performance.

Furthermore, the FDD states that franchisees are prohibited from bringing any claims or disputes against Ceridian or its affiliates related to the platform or the Platform Usage Agreement. Del Taco retains the right, but not the obligation, to initiate and resolve any claims or disputes between the franchisee and Ceridian. This arrangement places the responsibility for resolving issues with the platform on Del Taco, but without any obligation to act, leaving the franchisee potentially vulnerable. Franchisees should carefully consider the implications of this arrangement and factor in potential costs and risks associated with the platform's performance.