Can the advertising contribution or expenditure for a Del Taco franchise change upon renewal?

According to Del Taco's 2025 Franchise Disclosure Document, the advertising contribution or expenditure for a Del Taco franchise can change upon renewal. Specifically, the document states that the terms, conditions, and provisions of the renewal franchise agreement may differ substantially from the initial agreement. This includes the possibility of a higher percentage royalty fee and advertising contribution or expenditure.

For a prospective Del Taco franchisee, this means that the costs associated with advertising and marketing could increase when the franchise agreement is renewed. It is important to consider that the initial advertising fee structure may not be the same upon renewal, and franchisees should be prepared for potential increases in these costs. This could impact the overall profitability and financial planning for the franchise.

Furthermore, the franchisee will be required to execute Del Taco's then-current form of franchise agreement, which supersedes the original agreement in all respects, except for the renewal provisions of the new franchise agreement. This underscores the importance of carefully reviewing the terms of the renewal agreement to understand any changes in obligations, including those related to advertising and marketing contributions. Franchisees should seek clarification from Del Taco regarding any anticipated changes and factor these potential costs into their long-term financial projections.