factual

What is the Del Taco franchisee's transaction fee during the first cycle of the program?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee will pay the Transaction fee corresponding to Tier I during the first Cycle. BAMS may adjust Transaction fees to reflect the Del Taco system's actual Transaction volume in the previous Cycle. If the Del Taco system qualifies for a higher tier (i.e., a lower transaction fee) during any Cycle (other than the initial Cycle following the Start Date), BAMS will adjust Transaction fees beginning the month following the month in which the Del Taco system qualifies for the higher Tier for the remainder of that Cycle.

Source: Item 23 — RECEIPTS (FDD pages 59–325)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, franchisees will pay transaction fees corresponding to Tier I during the first cycle of the program. The transaction fees are based on transaction volumes accumulated during each twelve-month cycle following the program's start date. These fees are invoiced monthly by BAMS.

BAMS may adjust transaction fees in subsequent cycles to reflect the Del Taco system's actual transaction volume in the previous cycle. If the Del Taco system qualifies for a higher tier (meaning a lower transaction fee) during any cycle other than the initial one, BAMS will adjust the fees beginning the month following the qualification for the higher tier, and this adjustment will remain in effect for the rest of that cycle.

Transactions include online transactions using stored value cards through POS devices, selected transactions using a card number through designated internet sites, batch transactions performed through BAMS's help desk, batch transactions submitted via an electronic file, and any other transaction request for a card that is part of the franchisee's restaurants and received by BAMS from an authorized source. Transaction fees apply to any transaction for which the Database provides a processing response.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.