What is the franchisee agreeing to regarding Del Taco's expenditures from the marketing fees?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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, franchisees agree that Del Taco's expenditures from marketing fees are intended 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. Del Taco also does not have to ensure that any particular franchisee benefits directly or pro rata from these expenditures. This means that while franchisees contribute to the marketing fund, they may not see a direct or equal return on their investment in their specific location.
This agreement allows Del Taco discretion in how the marketing fees are spent, focusing on the overall benefit to the brand rather than individual franchisee benefits. A prospective franchisee should consider that the marketing strategies and expenditures may not always directly benefit their specific restaurant but are intended to strengthen the Del Taco brand as a whole.