What agreement outlines the terms for gift card processing with Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.20 Gift Cards.
If Del Taco requires, Franchisee agrees to participate in the gift card program(s) that Del Taco specifies.
For this purpose, Franchisee must purchase the software, hardware, blank cards, and other items needed to sell and process gift cards or stored value cards, which Del Taco may specify in the Manuals or otherwise in writing.
Franchisee also agrees to pay such monthly and perswipe transaction fees as may be required by the vendor of the gift card system.
Franchisee must sell or honor gift cards only in accordance with Del Taco's written standards.
Franchisee must account for all gift card sales, gift card redemptions, and other gift card transactions in the manner Del Taco specifies in the Manuals.
Franchisee must maintain sufficient cash reserves to pay Del Taco or other franchisees as part of any network-wide periodic reconciliation of the gift card program.
Franchisee shall pay Del Taco or make payments as specified by Del Taco, in such amounts and at such times as directed by Del Taco, in accordance with Del Taco's gift card rules, programs and policies.
Franchisee agrees not to sell, issue, or redeem gift certificates other than gift cards that Del Taco has approved in writing.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the specific terms and conditions for gift card processing are primarily outlined in Section 5.20 and further detailed in the Manuals or other written specifications provided by Del Taco. Franchisees are required to participate in any gift card programs that Del Taco specifies. This includes purchasing the necessary software, hardware, blank cards, and other related items.
In addition to purchasing the required materials, franchisees must also pay any monthly and per-swipe transaction fees associated with the gift card system vendor. Del Taco mandates that franchisees sell and honor gift cards strictly in accordance with the company's written standards. Franchisees are also responsible for accurately accounting for all gift card sales, redemptions, and other transactions as specified in the Manuals.
Furthermore, franchisees must maintain sufficient cash reserves to cover payments to Del Taco or other franchisees as part of any network-wide reconciliation of the gift card program. Franchisees are obligated to make payments as directed by Del Taco, adhering to the company's gift card rules, programs, and policies. It is explicitly stated that franchisees cannot sell, issue, or redeem any gift certificates other than the gift cards that Del Taco has approved in writing, ensuring uniformity and control over the gift card program across all franchise locations.