factual

What does Del Taco consider when determining how to spend the marketing fees?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

Del Taco shall use the Marketing Fee for any and all costs of maintaining, administering, directing, conducting, creating and/or otherwise preparing advertising, marketing, public relations and/or promotional programs and materials, and any other activities which Del Taco believes will enhance the image of the System, including the costs of preparing and/or conducting: media advertising campaigns; social media campaigns; direct mail advertising; marketing surveys and other public relations activities; employing advertising and/or public relations agencies to assist therein; brand research and development; developing and hosting marketing, brand development and enhancement, and customer engagement seminars for franchisees; purchasing promotional items; creating menu boards; developing new or modified trade dress and marks; point-of-purchase (POP) materials; design and photographs; conducting and administering visual merchandising, and other merchandising programs; purchasing media space or time (including all associated fees and expenses); administering regional and multi-regional marketing and advertising programs; market research and customer satisfaction surveys; developing and implementing customer loyalty and gift card programs; customer retention programs; the creative development of, and actual production associated with, premium items, giveaways, promotions, contests, public relation events, and charitable or non-profit events; developing, implementing and maintaining an electronic commerce website and/or related strategies; maintaining and developing one or more websites devoted to the System and/or the "Del Taco" brand; providing promotional and other marketing materials and services to the Del Taco restaurants operated under the System; the salaries of Del Taco's employees to the extent such employees provide services in conjunction with the System marketing activities; and all administrative and internal costs and expenses incurred in connection with the above.

Del Taco or its designee shall have the right to direct all advertising programs, as well as all aspects thereof, including the concepts, materials, and media used in such programs and the placement and allocation thereof.

Franchisee agrees and acknowledges that Del Taco's expenditures from the marketing fees are intended to maximize general public recognition, acceptance, perception of, and use of the System; and that Del Taco and its designee are not obligated, in administering the marketing fee expenditures, to make expenditures for Franchisee which are equivalent or proportionate to Franchisee's contribution, or to ensure that any particular franchisee benefits directly or pro rata from such expenditures.

Source: Item 22 — CONTRACTS (FDD pages 58–59)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, Del Taco uses the marketing fee for various costs associated with advertising, marketing, public relations, and promotional programs. These include media advertising campaigns, social media campaigns, direct mail advertising, marketing surveys, and other public relations activities. Del Taco may also employ advertising and/or public relations agencies, conduct brand research and development, and develop marketing seminars for franchisees.

Further, Del Taco uses the marketing fees for purchasing promotional items, creating menu boards, developing trade dress and marks, point-of-purchase materials, visual merchandising programs, purchasing media space or time, administering regional marketing programs, conducting market research and customer satisfaction surveys, and developing customer loyalty and gift card programs. They also cover the creative development and production of premium items, giveaways, promotions, contests, public relation events, and charitable events. Del Taco also uses the fees for developing and maintaining an electronic commerce website and other websites related to the Del Taco brand.

Del Taco has the right to direct all advertising programs, including the concepts, materials, and media used. Del Taco aims to maximize general public recognition, acceptance, perception, and use of the Del Taco system. Del Taco is not obligated to make expenditures for a franchisee that are equivalent or proportionate to the franchisee's contribution, or to ensure that any particular franchisee benefits directly or pro rata from such expenditures.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.