What is the settlement process for gift card transactions between BAMS and a Del Taco franchisee?

i.e. (a) the expiration of the initial term of the Franchise Agreement, in the event Franchisee does not renew its right to operate the Licensed Restaurant pursuant to Section 2.2 of the Franchise Agreement, or (b) the expiration of such renewal term, in the event Franchisee renews its right to operate the Licensed Restaurant pursuant to Section 2.2 of the Franchise Agreement), unless terminated sooner pursuant to Article 10 of this Agreement, or pursuant to the terms of the Franchise Agreement.

• 2. ACH Authorizations. Franchisee understands and agrees that amounts due and owing from Franchisee to BAMS in connection with the gift card program will be automatically debited from Franchisee's designated bank account(s) by ACH. Franchisee understands and agrees that BAMS is acting as a settlement agent for Franchisee and other participants, including Del Taco, in the gift card program for the settlement of gift card redemptions between gift card program participants. Accordingly, BAMS will initiate ACH debits from and credits to Franchisee's designated bank account(s) for amounts due to and from Franchisee for sales and redemption of gift cards and fees.
• 2.1 Franchisee will be required to sign the ACH authorization forms in Exhibit B to authorize BAMS to initiate ACH debits from, and credits to, their bank accounts. In the event that Franchisee adds a new location or changes a bank account, the Franchisee will provide to Del Taco the required bank account information on an ACH authorization form. Franchisee shall identify "Business Legal Entities" on the Gift Card Merchant Information form (Exhibit B). BAMS will provide reports to, and generate ACH transactions for each Business Legal Entity, Bank Account and Store Number.
• 3. Settlement Process. Once each fiscal week, BAMS will generate a settlement of gift card transactions. BAMS will compute the amount due from each Franchisee, as applicable, for the gift card sales for the fiscal week, and will compute that amount due to each Franchisee as applicable, for gift card redemptions for the fiscal week. The net settlement for each Franchisee, as applicable, will be an ACH credit or debit for all card sales and redemptions for the specified fiscal week.

• 4. Funding. Franchisee acknowledges, agrees and understands that proper funding of its designated bank account(s) for the gift card program is necessary to ensure fair and efficient administration of the gift card program. Franchisee agrees to ensure that its bank accounts are properly funded for the ACH settlement process and for ACH debits of settlement fees owed to BAMS.
• **5.

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