What is included in the advertising costs for Del Taco restaurants?

According to Del Taco's 2025 Franchise Disclosure Document, advertising costs encompass several components. These costs cover the development and execution of various marketing programs designed for Del Taco restaurants. Specifically, this includes the production and placement of media and print advertising. Additionally, advertising costs incorporate the expenses associated with in-restaurant placards and similar promotional items.

Prospective franchisees should note that, like company-owned restaurants, franchisees are required to pay a marketing fee equivalent to 4% of sales. This fee contributes to the overall advertising fund used for the aforementioned marketing activities. Franchisees should consult their Franchise Agreement for detailed provisions regarding the required level of advertising expenditures.

Table 19-2-A in the FDD provides a breakdown of average operating results for freestanding company-owned Del Taco restaurants, including advertising expenses. For example, in 2024, the average advertising cost was $72,217, representing 4.0% of sales. Local advertising costs averaged $4,090, or 0.2% of sales, in 2024, but were $0 in 2023 and 2022. These figures can give potential franchisees an idea of the scale of advertising investments made by company-owned locations, though actual costs for a franchised location may vary.