Under what condition will BAMS adjust the Del Taco system's transaction fees during a cycle?
Del_Taco Franchise · 2025 FDDAnswer 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, BAMS (presumably a third-party payment processor) may adjust transaction fees based on the Del Taco system's transaction volume. During the initial cycle, franchisees pay transaction fees corresponding to Tier I. However, BAMS may adjust these fees to reflect the Del Taco system's actual transaction volume from the previous cycle.
Specifically, if the Del Taco system qualifies for a higher tier, which means a lower transaction fee, during any cycle other than the initial one, BAMS will adjust the transaction fees. This adjustment begins the month following the month in which the Del Taco system qualifies for the higher tier and continues for the remainder of that cycle.
This means that if the overall transaction volume across all Del Taco locations increases enough to reach a higher tier with lower fees, individual franchisees could benefit from reduced transaction costs. This incentivizes franchisees to contribute to the overall success and transaction volume of the Del Taco system, as their fees are partially dependent on the collective performance.