What laws must local advertising and promotion by a Del Taco franchisee comply with?
Del_Taco Franchise · 2025 FDDAnswer 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.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, a franchisee's local advertising and promotion must comply with all applicable laws. Additionally, all advertising and promotion must be factually accurate and conform to the highest standards of ethical advertising. Franchisees must also adhere to the highest standards of honesty, integrity, fair dealing, and ethical conduct in all dealings with customers, suppliers, and the public, while also complying with all consumer protection and unfair competition laws and regulations.
Del Taco maintains control over advertising programs, including concepts, materials, media, and placement. Franchisees must obtain written approval from Del Taco before using any advertising or promotional materials. This ensures that all local advertising aligns with Del Taco's brand standards and legal requirements.
These stipulations are typical in franchising, as franchisors need to protect their brand image and ensure consistent messaging across all locations. Franchisees should be aware that while they can engage in local advertising, they must do so within the boundaries set by Del Taco and in compliance with all relevant legal standards.