What is a Del Taco franchisee prohibited from doing regarding gift certificates?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Del Taco Franchise Disclosure Document, franchisees are prohibited from selling, issuing, or redeeming gift certificates that Del Taco has not approved in writing. This means that franchisees must exclusively use the gift card program and specific gift cards that Del Taco authorizes.
This restriction ensures brand consistency and control over the financial aspects related to gift cards. Del Taco mandates that franchisees participate in specified gift card programs, purchasing necessary software, hardware, and blank cards. Franchisees are also responsible for monthly and per-swipe transaction fees associated with the gift card system vendor.
Furthermore, franchisees must adhere to Del Taco's written standards for selling and honoring gift cards and must meticulously account for all gift card transactions as specified in the manuals. They must also maintain sufficient cash reserves to cover payments to Del Taco or other franchisees as part of the network-wide reconciliation of the gift card program. This comprehensive control allows Del Taco to manage the gift card program effectively across all franchise locations, ensuring uniformity and financial stability.
In practical terms, a prospective franchisee should understand that they cannot introduce their own independently designed or managed gift certificate programs. They must fully integrate into Del Taco's established gift card system, following all guidelines and procedures set forth by the franchisor. This includes using approved vendors, tracking sales and redemptions accurately, and participating in network-wide reconciliations.