Is a Del Taco franchisee required to participate in the advertising program?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
franchise.
Advertising Program
We maintain and administer an advertising program in which you must participate and to which you must contribute by paying a monthly marketing fee. As described in Item 6, the current marketing fee equals 4% of your net sales. We may increase the fee to the then-current marketing fee we charge new franchisees
upon prior written notice to you. Except for a few non-traditional franchised and several original/founding franchised Restaurants that pay a lower rate, all franchisees contribute at the same rate. While not required to do so, all Del Taco Restaurants operated by us contribute on the same basis as franchisees: 4% of the Restaurant's net sales, except for one company operated location that does not pay a marketing fee and one company operated location that pays a marketing fee of 3% of net sales.
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, franchisees must participate in the advertising program. This participation requires franchisees to contribute to the program by paying a monthly marketing fee. Currently, this fee is 4% of net sales, as detailed in Item 6 of the FDD. Del Taco retains the right to increase this fee, providing prior written notice to the franchisee, up to the level charged to new franchisees at that time.
Most Del Taco franchisees contribute to the advertising program at the same rate. However, there are exceptions for a few non-traditional franchised restaurants and several original/founding franchised restaurants, which may pay a lower rate. Company-operated Del Taco restaurants also contribute on the same basis as franchisees, with a contribution of 4% of net sales, except for one company-operated location that does not pay a marketing fee and another that pays 3% of net sales.
This mandatory participation in the advertising program means that prospective franchisees need to factor in this ongoing cost when evaluating the financial feasibility of a Del Taco franchise. While the advertising program aims to benefit the entire Del Taco system, franchisees should be aware that Del Taco does not guarantee that a franchisee's restaurant will benefit directly or in proportion to their contribution.