What standards must local advertising and promotion by a Del Taco franchisee conform to?
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. As used in this Agreement, the term "Local Advertising and Promotion" shall consist only of the direct costs of purchasing and producing advertising materials (including, but not limited to, camera ready advertising and point of sale materials), media (space
or time), and those direct out of pocket expenses related to costs of advertising and sales promotion spent by Franchisee in the Protected Area, advertising agency fees and expenses, postage, shipping, telephone, and photocopying; however, the parties expressly agree that advertising and sales promotion shall not include costs or expenses incurred by or on behalf of Franchisee in connection with any of the following:
- 6.3.1 Salaries and expenses of any employees of Franchisee, including salaries or expenses for attendance at advertising meetings or activities, or incentives provided or offered to such employees, including discount coupons; or
- 6.3.2 Charitable, political, or other contributions or donations, whether in cash, food, or services;
- 6.3.3 The value of discounts provided to customers;
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, any local advertising and promotion undertaken by a franchisee must adhere to specific standards set by Del Taco. These promotions must be in media, type, and format approved by Del Taco, and must be conducted in a dignified manner. Furthermore, all local advertising must comply with applicable laws. Franchisees cannot use any advertising or promotional materials without prior written approval from Del Taco.
Del Taco franchisees must also follow all written instructions, policies, procedures, and restrictions regarding advertising and marketing, whether within their protected area or in areas that may be assigned to other Del Taco restaurants or franchisees. This includes rules about honoring gift certificates, stored value cards, and promotions.
All advertising and promotion by the franchisee 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, and comply with all consumer protection and unfair competition laws and regulations. This ensures that the franchisee's advertising practices do not harm Del Taco's brand or reputation.
If a franchisee proposes local advertising and promotion, they must submit samples of their plans and materials to Del Taco for review and prior written approval. If the franchisee does not receive written approval from Del Taco within fifteen (15) days of Del Taco's receipt of the samples, the advertising is considered disapproved. Del Taco also retains ownership of any copyright in advertising and promotional materials developed by or on behalf of the franchisee.