What is BAMS acting as for Del Taco franchisees in the gift card program?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee understands and agrees that BAMS is acting as a settlement agent for Franchisee and other participants, including Del Taco, in the gift card program for the settlement of gift card redemptions between gift card program participants.
Accordingly, BAMS will initiate ACH debits from and credits to Franchisee's designated bank account(s) for amounts due to and from Franchisee for sales and redemption of gift cards and fees.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Banc of America Merchant Services (BAMS) acts as a settlement agent for Del Taco franchisees and other participants in the gift card program. This means BAMS is responsible for handling the financial transactions related to gift card sales and redemptions among all parties involved in the program.
Specifically, BAMS manages the settlement of gift card redemptions between the various participants in the gift card program. To facilitate this, BAMS initiates Automated Clearing House (ACH) debits and credits to the franchisee's designated bank accounts. These transactions cover the amounts the franchisee owes or is owed for the sale and redemption of gift cards, as well as any associated fees.
As a Del Taco franchisee, you'll need to sign ACH authorization forms to allow BAMS to debit and credit your bank accounts. BAMS provides reports and generates ACH transactions for each business legal entity, bank account, and store number. BAMS will compute the amount due from each franchisee for gift card sales and the amount due to each franchisee for gift card redemptions on a weekly basis. The net settlement will then be processed as an ACH credit or debit for all card sales and redemptions for that week.