What is the importance of standardization of advertising and marketing programs for Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Recognizing the value of advertising and marketing, and the importance of the standardization of advertising and marketing programs to the furtherance of the goodwill and public image of the System, the parties agree as follows:
- 6.1 Marketing Fee Expenditure.
Del Taco shall use the Marketing Fee for any and all costs of maintaining, administering, directing, conducting, creating and/or otherwise preparing advertising, marketing, public relations and/or promotional programs and materials, and any other activities which Del Taco believes will enhance the image of the System, including the costs of preparing and/or conducting: media advertising campaigns; social media campaigns; direct mail advertising; marketing surveys and other public relations activities; employing advertising and/or public relations agencies to assist therein; brand research and development; developing and hosting marketing, brand development and enhancement, and customer engagement seminars for franchisees; purchasing promotional items; creating menu boards; developing new or modified trade dress and marks; point-of-purchase (POP) materials; design and photographs; conducting and administering visual merchandising, and other merchandising programs; purchasing media space or time (including all associated fees and expenses); administering regional and multi-regional marketing and advertising programs; market research and customer satisfaction surveys; developing and implementing customer loyalty and gift card programs; customer retention programs; the creative development of, and actual production associated with, premium items, giveaways, promotions, contests, public relation events, and charitable or non-profit events; developing, implementing and maintaining an electronic commerce website and/or related strategies; maintaining and developing one or more websites devoted to the System and/or the "Del Taco" brand; providing promotional and other marketing materials and services to the Del Taco restaurants operated under the System; the salaries of Del Taco's employees to the extent such employees provide services in conjunction with the System marketing activities; and all administrative and internal costs and expenses incurred in connection with the above.
Del Taco or its designee shall have the right to direct all advertising programs, as well as all aspects thereof, including the concepts, materials, and media used in such programs and the placement and allocation thereof.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, standardization in advertising and marketing programs is crucial for maintaining and enhancing the goodwill and public image of the Del Taco system. Del Taco emphasizes the value of consistent advertising and marketing efforts to promote brand recognition and customer loyalty. This standardization ensures that all Del Taco restaurants, including those operated by franchisees, present a unified and recognizable brand identity to the public.
Del Taco retains control over all advertising programs, including the concepts, materials, and media used. This control allows Del Taco to direct advertising efforts in a way that maximizes general public recognition and acceptance of the Del Taco system. While franchisees contribute to marketing fees, Del Taco is not obligated to ensure that expenditures benefit each franchisee equally or proportionately to their contribution. This approach allows Del Taco to focus on strategies that benefit the entire system, even if some franchisees do not see direct or immediate benefits.
Franchisees are required to adhere to Del Taco's standards and obtain written approval for all local advertising and promotional materials. This ensures that all advertising, whether national or local, aligns with Del Taco's brand standards and legal requirements. Franchisees must also comply with Del Taco's instructions and policies regarding advertising within and outside their protected areas, including rules about honoring gift certificates and promotions. This coordinated approach helps maintain a consistent brand experience for customers, regardless of location, and prevents conflicts between different franchise territories.
Del Taco may also provide franchisees with advertising plans and promotional materials at the franchisee's expense. These materials include newspaper mats, coupons, merchandising materials, and point-of-purchase materials. Del Taco also has the right to require that all advertising and promotional materials, signs, decorations, and paper goods bear Del Taco's Proprietary Marks and logos in the prescribed form, color, location, and manner. This level of control ensures that every aspect of the Del Taco brand, from national campaigns to in-store materials, reinforces a consistent and recognizable image.