How will the net settlement for each Del Taco franchisee be processed?

According to Del Taco's 2025 Franchise Disclosure Document, the net settlement for each franchisee regarding gift card transactions will be processed through ACH (Automated Clearing House) transfers. Specifically, BAMS (Banc of America Merchant Services), acting as a settlement agent, will compute the amount due from each franchisee for gift card sales during a fiscal week and the amount due to each franchisee for gift card redemptions during the same period.

The net settlement, which represents the difference between the amounts due from and to the franchisee, will then be processed as either an ACH credit or debit. This means that if a franchisee owes money for gift card sales, their account will be debited. Conversely, if a franchisee is owed money for gift card redemptions, their account will be credited. These transactions will occur once each fiscal week.

This process ensures that all gift card transactions are settled efficiently and regularly. Franchisees must maintain proper funding in their designated bank accounts to cover any potential ACH debits. If an ACH debit is dishonored due to insufficient funds or other reasons, BAMS will notify Del Taco and initiate follow-up ACH transactions, potentially including a $20 penalty per returned item. This highlights the importance of franchisees managing their accounts diligently to avoid penalties and ensure smooth operation of the gift card program.