What laws must Annex Brands franchisees comply with regarding payment cards?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
You must comply with various federal, state and local laws and regulations, including copyright laws that impact the operation of your retail center franchise. Examples include: (i) USPS Regulations, including certain forms and notifications to U. S. Postmasters, such as filing a USPS Form 1583 on each mailbox customer you service, and complying with certain customer return addressing requirements; (ii) laws requiring you to accept service of process for customers in some states; (iii) inspection of scales by the local and Federal Departments of Weights and Measures; (iv) laws and regulations governing offering notary services and any state laws that may require you to be subject to fingerprinting and a competency test; (v) regulations governing Internet auctions as set forth by any state or federal agency and eBay, Inc.; (vi) laws governing the shipment and transport of hazardous substances, alcoholic beverages, firearms, lithium batteries, food, plants, agricultural products and animals; (vii) regulations governing the transportation and handling of hazardous and dangerous substances and cargo; (viii) certain air cargo restrictions instituted under various Homeland Security-related laws; (ix) laws, regulations, industry standards, and PCI Data Security standards, as required for merchants that accept payment cards and, if applicable for flex retail centers, (x) laws and regulations by state and federal agencies for moving companies, including the U .S. Department of Transportation's Federal Motor Carrier Safety Administration; and (xi) licensing requirements, rules, and tariffs governing the transportation and delivery of household goods and general commodities, both in transportation domestically and internationally. Certain services, such as Western Union, also may require fingerprinting or a bond.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–13)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, franchisees must comply with laws, regulations, industry standards, and PCI Data Security standards as required for merchants that accept payment cards. This requirement extends to flex retail centers, if applicable.
In practical terms, this means that if an Annex Brands franchisee accepts credit or debit cards as a form of payment, they must adhere to the Payment Card Industry Data Security Standard (PCI DSS). This standard is a set of security requirements designed to ensure that all companies that process, store, or transmit credit card information maintain a secure environment. Compliance involves implementing various security measures, such as installing firewalls, encrypting data, using strong passwords, and regularly updating antivirus software.
Failure to comply with PCI DSS and other relevant laws and regulations can result in significant penalties, including fines, legal action, and damage to the franchisee's reputation. It is the franchisee's responsibility to stay informed about and adhere to these standards to protect their business and customers' financial information. Prospective franchisees should budget for the costs associated with maintaining PCI compliance, which may include software, hardware, and professional services.