Can a Del Taco franchisee use any credit card or payment service provider they choose?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees do not have complete autonomy in choosing credit card and payment service providers. Del Taco designates mandatory credit- and debit-card issuers or sponsors, check or credit verification services, financial-center services, and electronic-funds-transfer systems. Franchisees must secure written approval from Del Taco before using any service or provider, and Del Taco retains the right to revoke approval of any service provider.
Del Taco can modify its requirements and designate additional approved or required methods of payment and vendors for processing such payments. Franchisees must adhere to all credit card policies outlined in the manuals and comply with the Payment Card Industry Data Security Standards (PCI DSS) and the Fair and Accurate Credit Transactions Act (FACTA).
Furthermore, franchisees are responsible for periodically upgrading their POS system and related software to maintain compliance with PCI DSS, FACTA, and all related laws and regulations. This ensures that all payment processing activities align with Del Taco's standards and legal requirements, giving Del Taco significant control over payment-related operations within the franchise system.