How will Del Taco notify franchisees of an increase to the marketing fee?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
franchise.
Advertising Program
We maintain and administer an advertising program in which you must participate and to which you must contribute by paying a monthly marketing fee. As described in Item 6, the current marketing fee equals 4% of your net sales. We may increase the fee to the then-current marketing fee we charge new franchisees
upon prior written notice to you. Except for a few non-traditional franchised and several original/founding franchised Restaurants that pay a lower rate, all franchisees contribute at the same rate. While not required to do so, all Del Taco Restaurants operated by us contribute on the same basis as franchisees: 4% of the Restaurant's net sales, except for one company operated location that does not pay a marketing fee and one company operated location that pays a marketing fee of 3% of net sales.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–38)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco may increase the marketing fee that franchisees pay with prior written notice. The marketing fee is used to fund the advertising program that Del Taco maintains and administers. Currently, the marketing fee is 4% of net sales, though some non-traditional and original/founding franchised restaurants pay a lower rate.
Del Taco has sole discretion over the advertising and promotional programs, including the creative concepts, materials, media use, and placement. Del Taco generally works with an advertising agency to develop advertising for print, radio, or television, and media coverage may be local, regional, or national. Franchisees may develop their own advertising materials at their own cost, but Del Taco must approve them in writing in advance.
The marketing fees are used to develop advertising and marketing materials and programs and to place advertising that will benefit the entire Del Taco system. During the last fiscal year, Del Taco spent the marketing fees on the production of advertisements and other promotional materials (11.7%), general and administrative expenses (11.8%), other expenses (10.8%), and media placement (65.7%).