What standards and requirements must Del Taco franchisees conform to when conducting local advertising and promotion?
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; or
- 6.3.4 The cost of food items.
- 6.4 Approvals. For all proposed Local Advertising and Promotion, Franchisee shall submit samples of such plans and materials to Del Taco in the manner that Del Taco prescribes, for Del Taco's review and prior written approval (except with respect to prices to be charged by Franchisee).
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees must adhere to specific standards and requirements for local advertising and promotion. All local advertising must be in media, type, and format approved by Del Taco, conducted in a dignified manner, and compliant with all applicable laws. Franchisees cannot use any advertising or promotional materials without prior written approval from Del Taco. Franchisees must also comply with all of Del Taco's written instructions, policies, procedures, and restrictions regarding advertising and marketing within and outside their protected area, including rules about honoring gift certificates, stored value cards, and promotions. This ensures that all advertising aligns with Del Taco's brand standards and legal requirements.
Del Taco retains control over advertising programs, including concepts, materials, media, and placement. The expenditures from marketing fees are intended to maximize general public recognition and acceptance of the Del Taco system. Del Taco is not obligated to make expenditures for franchisees equivalent to their contributions or ensure direct pro rata benefits from such expenditures. This means that while franchisees contribute to the marketing fund, they may not see direct or proportional benefits in their specific location, as Del Taco aims to enhance the overall brand image.
Franchisees must submit samples of all proposed local advertising and promotion plans to Del Taco for review and written approval, except for prices they intend to charge. If written approval is not received within fifteen days of Del Taco's receipt of the materials, the advertising is deemed disapproved. All copyrights in advertising and promotional materials developed by or on behalf of the franchisee become the sole property of Del Taco. This requirement ensures that Del Taco maintains control over the brand's image and messaging, even in local advertising efforts. Del Taco may also make available advertising plans and promotional materials to franchisees at the franchisee's expense, including newspaper mats, coupons, merchandising materials, and direct mail materials.
The term "Local Advertising and Promotion" includes the direct costs of purchasing and producing advertising materials, media space or time, and direct out-of-pocket expenses related to advertising and sales promotion spent by the franchisee in their protected area. It also includes advertising agency fees and expenses, postage, shipping, telephone, and photocopying. However, it does not include salaries and expenses of franchisee employees, charitable or political contributions, the value of discounts provided to customers, or the cost of food items. This definition clarifies what expenses franchisees can include as part of their local advertising and promotion costs, ensuring consistency and preventing misuse of advertising funds.