Is Del Taco obligated to consider the economic impact on a franchisee's restaurant when advertising and promoting the Del Taco system within or outside the Protected Area?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Without obligation to Franchisee, Del Taco and its affiliates may, among other things, and regardless of proximity to or economic impact upon the Restaurant:
- 1.2.1 Advertise and promote the System within and outside of the Protected Area;
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.
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 is not obligated to consider the economic impact on a franchisee's restaurant when advertising and promoting the Del Taco system within or outside the Protected Area. Del Taco retains the right to advertise and promote the system without any obligation to the franchisee, regardless of the proximity to or economic impact upon the franchisee's restaurant. This means that Del Taco can conduct advertising campaigns that may or may not directly benefit an individual franchisee's location.
Del Taco's advertising programs are designed to maximize general public recognition and acceptance of the Del Taco system. Del Taco is not required to make marketing expenditures that are equivalent or proportionate to a franchisee's contribution to the marketing fund, nor are they obligated to ensure that a franchisee benefits directly or pro rata from these expenditures. This allows Del Taco to direct advertising efforts where they believe it will most effectively promote the brand as a whole, even if some locations see less direct benefit.
This policy is typical in many franchise systems, where marketing is often approached from a system-wide perspective rather than focusing on individual unit performance. While franchisees contribute to a marketing fund, the franchisor has discretion over how those funds are spent to benefit the entire brand. Prospective Del Taco franchisees should understand that while they are required to participate in marketing efforts, they may not always see a direct and measurable return on their investment at their specific location.