What is Del Taco's intention regarding expenditures from the marketing fees?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees and acknowledges that Del Taco's expenditures from the marketing fees are intended to maximize general public recognition, acceptance, perception of, and use of the System; and that Del Taco 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.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco intends to use marketing fees to maximize public recognition, acceptance, perception, and use of the Del Taco system. Del Taco has the right to direct all advertising programs, including the concepts, materials, and media used.
Del Taco is not obligated to make expenditures for a franchisee that are equivalent or proportionate to the franchisee's contribution. Del Taco also is not required to ensure that any particular franchisee benefits directly or pro rata from these expenditures.
This means that while franchisees contribute to the marketing fund, Del Taco has broad discretion in how those funds are spent and is not required to ensure that each franchisee benefits equally or in direct proportion to their contribution. This is a fairly standard practice in franchising, where marketing is often approached from a system-wide perspective rather than individual unit performance.
Prospective franchisees should understand that their marketing fee contributions may not directly benefit their specific location and should inquire about Del Taco's overall marketing strategy and how it aims to support the brand as a whole.