What credit card and payment processing relationships must a Del Taco franchisee maintain?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement.
- 5.21.3 The consent given above in this Section 5.21 will not apply to the provision of formal notices under this Agreement by either party using e-mail unless and until the parties have otherwise agreed, in a pen-and-paper writing that both parties have signed.
- 5.22 Credit Cards and Other Methods of Payment. At all times, Franchisee must maintain credit-card relationships with the credit- and debit-card issuers or sponsors, check or credit verification services, financial-center services, and electronic-funds-transfer systems that Del Taco designates as mandatory, and Franchisee must not use any such services or providers that Del Taco has not approved in writing or for which Del Taco has revoked its approval. Del Taco has the right to modify its requirements and designate additional approved or required methods of payment and vendors for processing such payments, and to revoke its approval of any service provider. Franchisee must comply with all credit-card policies as prescribed in the Manuals. Franchisee must comply with the Payment Card Industry Data Security Standards ("PCI DSS") as they may be revised and modified by the Payment Card Industry Security Standards Council (see www.pcisecuritystandards.org), or such successor or replacement organization and/or in accordance with other standards as Del Taco may specify, and the Fair and Accurate Credit Transactions Act ("FACTA"). Franchisee shall also upgrade periodically its POS System and related software, at Franchisee's expense, to maintain compliance with PCI DSS, FACTA, and all related laws and regulations.
- 5.23 Uniforms. To promote a uniform System image, Franchisee shall require all of its Restaurant personnel to dress during business hours in the attire specified in the Manuals. Franchisee shall purchase such attire only from approved suppliers.
- 5.24 Incentive and Loyalty Programs. Franchisee shall offer for sale, and will honor for purchases by customers, any incentive, convenience or loyalty programs which Del Taco may institute from time to time, and Franchisee shall do so in compliance with Del Taco's standards and procedures for such programs.
- 5.25 Prices. With respect to the sale of all Menu Items, products, or services, Franchisee shall have sole discretion as to the prices to be charged to customers; provided, however, that Del Taco may establish, advertise, and promote minimum and maximum prices on such Menu Items, products, and services, subject to compliance with applicable laws.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees must maintain relationships with credit- and debit-card issuers or sponsors, check or credit verification services, financial-center services, and electronic-funds-transfer systems that Del Taco designates as mandatory. Franchisees are prohibited from using any services or providers that Del Taco has not approved in writing or for which Del Taco has revoked its approval. Del Taco retains the right to modify these requirements, designate additional approved or required payment methods and vendors, and revoke approval of any service provider.
Del Taco franchisees must also comply with all credit-card policies as prescribed in the manuals. This includes adhering to the Payment Card Industry Data Security Standards (PCI DSS) and the Fair and Accurate Credit Transactions Act (FACTA). Franchisees are responsible for periodically upgrading their POS system and related software, at their own expense, to maintain compliance with PCI DSS, FACTA, and all related laws and regulations.
Furthermore, if Del Taco requires participation in a gift card program, franchisees must purchase the necessary software, hardware, blank cards, and other items to sell and process gift cards. Franchisees also agree to pay monthly and per-swipe transaction fees required by the gift card system vendor. They must sell or honor gift cards according to Del Taco's written standards and account for all gift card transactions as specified in the manuals. Franchisees 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 and are prohibited from selling, issuing, or redeeming gift certificates other than approved gift cards.