What efforts must Del Taco licensees of nontraditional restaurants make to advance the reputation of Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensees of nontraditional restaurants pay a Marketing Fee, which is typically 1.4% of net sales. Licensees of nontraditional restaurants must use reasonable efforts to advance the reputation of Del Taco restaurants and the products sold under the trademarks in order to increase the goodwill of the trademarks and the system.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–38)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, licensees of nontraditional Del Taco restaurants are required to make reasonable efforts to enhance the brand's reputation. This includes promoting Del Taco restaurants and the products sold under its trademarks. The goal is to increase the goodwill associated with the trademarks and the overall Del Taco system.
Licensees of nontraditional restaurants also pay a Marketing Fee, typically 1.4% of net sales. While the FDD specifies that these licensees must work to improve the brand's reputation, it does not detail the specific actions that constitute "reasonable efforts."
Prospective franchisees of nontraditional Del Taco restaurants should seek clarification from Del Taco regarding what specific activities or initiatives they will be expected to undertake to meet this obligation. Understanding these expectations is crucial for budgeting time, resources, and marketing strategies to align with Del Taco's requirements for maintaining and enhancing its brand image.