What costs are included in 'Advertising costs' for Del Taco restaurants?

According to Del Taco's 2025 Franchise Disclosure Document, advertising costs encompass the expenses associated with creating and implementing various marketing initiatives for Del Taco restaurants. These costs specifically include the production and placement of media and print advertising. Additionally, advertising costs cover in-restaurant placards and similar promotional items.

For prospective Del Taco franchisees, understanding these advertising costs is crucial for budgeting and financial planning. The FDD indicates that both company-owned and franchised Del Taco restaurants pay a marketing fee equivalent to 4% of sales, which contributes to these advertising efforts. Franchisees should consult the Franchise Agreement for detailed provisions regarding required advertising expenditures.

The 2022 average advertising costs for freestanding company-owned Del Taco restaurants were $67,081, representing 4.0% of sales. In 2023, the average advertising cost was $69,826, also 4.0% of sales, and in 2024, it was $72,217, again 4.0% of sales. These figures provide a benchmark for franchisees to compare their own advertising expenses and assess the effectiveness of marketing programs. Note that these figures do not include local advertising costs, which were reported separately and averaged $0 in 2023 and 2022, and $4,090 in 2024.

It's important for potential franchisees to recognize that advertising strategies and costs can vary based on location, market conditions, and specific campaigns. While the FDD offers a general overview, franchisees should engage with Del Taco's marketing team to develop tailored strategies that align with their local market and business goals. Understanding the breakdown of these costs and the expected return on investment is essential for maximizing profitability and brand awareness.