factual

What is the franchisee's role in local advertising and promotion for Del Taco?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

  • 6.2 Local Advertising and Promotion. All local advertising and promotion by Franchisee shall be in such media, and of such type and format as Del Taco may approve; shall be conducted in a dignified manner; shall conform to such standards and requirements as Del Taco may specify; and shall comply with all applicable laws. Franchisee shall not use any advertising or promotional plans or materials unless and until Franchisee has received written approval from Del Taco, pursuant to the procedures and terms set forth in Section 6.4 below. Franchisee shall comply with all of Del Taco's written instructions, policies, procedures, and restrictions regarding advertising and marketing within the Protected Area, outside of Franchisee's Protected Area, and in areas that may be territories assigned to other Del Taco Restaurants or franchisees (including, without limitation, rules regarding honoring of gift certificates, stored value cards, and promotions).
  • 6.3 Costs of Local Advertising and Promotion. As used in this Agreement, the term "Local Advertising and Promotion" shall consist only of the direct costs of purchasing and producing advertising materials (including, but not limited to, camera ready advertising and point of sale materials), media (space

or time), and those direct out of pocket expenses related to costs of advertising and sales promotion spent by Franchisee in the Protected Area, advertising agency fees and expenses, postage, shipping, telephone, and photocopying; however, the parties expressly agree that advertising and sales promotion shall not include costs or expenses incurred by or on behalf of Franchisee in connection with any of the following:

  • 6.3.1 Salaries and expenses of any employees of Franchisee, including salaries or expenses for attendance at advertising meetings or activities, or incentives provided or offered to such employees, including discount coupons; or
  • 6.3.2 Charitable, political, or other contributions or donations, whether in cash, food, or services;
    • 6.3.3 The value of discounts provided to customers; or
    • 6.3.4 The cost of food items.
  • 6.4 Approvals. For all proposed Local Advertising and Promotion, Franchisee shall submit samples of such plans and materials to Del Taco in the manner that Del Taco prescribes, for Del Taco's review and prior written approval (except with respect to prices to be charged by Franchisee). If written approval is not received by Franchisee from Del Taco within fifteen (15) days of the date of receipt by Del Taco of such samples or materials, Del Taco shall be deemed to have disapproved them. Franchisee acknowledges and agrees that any and all copyright in and to advertising and promotional materials developed by or on behalf of Franchisee shall be the sole property of Del Taco, and Franchisee agrees to execute such documents (and, if necessary, require its independent contractors to execute such documents) as may be deemed reasonably necessary by Del Taco to give effect to this provision.
  • 6.5 Promotional Materials. Del Taco may make available to Franchisee from time to time, at Franchisee's expense, advertising plans and promotional materials, including newspaper mats, coupons, merchandising materials, sales aids, point of purchase materials, special promotions, direct mail materials, community relations programs, and similar advertising and promotional materials. Del Taco may provide periodic marketing assistance to Franchisee, including telephone and email marketing assistance, and templates or other materials for email-based marketing. Del Taco shall have the right to require all advertising and promotional materials, signs, decorations, paper goods (including disposable food and beverage containers, bags, napkins, menus, and all forms and stationery used in the Restaurant), any and all replacement trade dress products, and other items which may be designated by Del Taco, to bear the Del Taco's then-current Proprietary Marks and logos in the form, color, location, and manner then-prescribed by Del Taco.

7. Records and Reports.

7.1 Records. Franchisee shall maintain for a period of not less than three (3) years during the term of this Agreement, and, for not less than three (3) years following the termination, expiration, or nonrenewal of this Agreement, full, complete, and accurate books, records, and accounts in accordance with generally accepted accounting principles, as required by law, and in the form and manner prescribed by Del Taco from time to time in the Manuals or otherwise in writing. Franchisee shall prepare and maintain all books and records required under this Agreement and as prescribed by Del Taco during each fiscal year during the Term of this Agreement and for the three years prior to each fiscal year.

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

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, franchisees play a role in local advertising and promotion, but with significant oversight and control retained by Del Taco. All local advertising and promotion must be in media, type, and format approved by Del Taco, conducted in a dignified manner, and conform to Del Taco's standards and legal requirements. Franchisees cannot use any advertising or promotional materials without prior written approval from Del Taco. Franchisees must also comply with Del Taco's instructions and policies regarding advertising and marketing within and outside their protected area, including rules about honoring gift certificates and promotions. This ensures brand consistency and prevents conflicts between different Del Taco locations.

The term "Local Advertising and Promotion" is specifically defined as the direct costs of purchasing and producing advertising materials, media space or time, and direct out-of-pocket expenses related to advertising and sales promotion within the franchisee's protected area. This includes advertising agency fees, postage, shipping, telephone, and photocopying. However, certain costs are explicitly excluded from what qualifies as local advertising and promotion. These exclusions include salaries and expenses of franchisee employees, charitable or political contributions, the value of discounts provided to customers, and the cost of food items. This distinction is important for franchisees to understand when budgeting and planning their local advertising efforts.

For all proposed local advertising and promotion, franchisees must submit samples of their plans and materials to Del Taco for review and prior written approval, except for the prices they intend to charge. Del Taco has 15 days to provide written approval; otherwise, the plans are deemed disapproved. Furthermore, any copyright in advertising and promotional materials developed by or on behalf of the franchisee becomes the sole property of Del Taco. Del Taco may also make available to franchisees advertising plans and promotional materials at the franchisee's expense, such as newspaper mats, coupons, point-of-purchase materials, and direct mail materials. Del Taco also retains the right to require that all advertising and promotional materials bear Del Taco's proprietary marks and logos in the prescribed form, color, location, and manner.

Upon signing the franchise agreement, the franchisee must pay Del Taco a $10,000 Promotional Fee. The franchisee can draw upon this fee through reimbursements submitted to Del Taco or through direct payments by Del Taco to vendors to promote the restaurant within a year of the restaurant’s opening. The franchisee must submit a request and receive written approval from Del Taco before contracting for or making any expenditures related to the promotion of the restaurant. If the franchisee fails to spend all of the Promotional Fee within 12 months after the opening of the Restaurant, the franchisee will forfeit the unused portion of the fee, and Del Taco will apply it toward Del Taco's general advertising or marketing programs.

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.