What happens if a Del Taco franchisee violates Del Taco's written instructions, policies, procedures, and restrictions regarding advertising and marketing?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, franchisees must adhere to Del Taco's advertising and marketing guidelines. Specifically, franchisees must comply with all of Del Taco's written instructions, policies, procedures, and restrictions regarding advertising and marketing within their protected area, outside of it, and in areas assigned to other Del Taco restaurants or franchisees. This includes rules about honoring gift certificates, stored value cards, and promotions.
Del Taco maintains control over all advertising programs, including the concepts, materials, media, and placement. Franchisees need written approval from Del Taco before using any advertising or promotional materials. This ensures that all local advertising aligns with Del Taco's standards and requirements and is conducted in a dignified manner while complying with all applicable laws.
While the FDD excerpt specifies the franchisee's obligations regarding advertising and marketing, it does not explicitly detail the consequences of violating these instructions, policies, procedures, and restrictions. A prospective franchisee should seek clarification from Del Taco regarding the specific penalties or actions that Del Taco may take if a franchisee fails to comply with these advertising and marketing requirements. This information is crucial for understanding the potential risks and obligations associated with the franchise agreement.