What is an Atwell Suites franchisee prohibited from doing regarding surcharges on card transactions?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) each Card transaction amount is only for respective merchandise or services (including taxes, but without any surcharge, except as required by Card Organization Rules) sold, leased, or rented by you pursuant to your business as indicated on the Application and, except for any delayed delivery or advance deposit Card transactions expressly authorized by the Agreement, that merchandise or service was actually delivered to or performed for the Cardholder entering into that Card transaction simultaneously upon your accepting and submitting that Card transaction for processing;
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, franchisees are generally prohibited from adding surcharges to card transactions. Specifically, the FDD states that the amount charged for each card transaction should not include any surcharge, unless required by Card Organization Rules. This means that, as a general rule, Atwell Suites franchisees must absorb the costs associated with card processing without passing them on to customers as a separate fee.
This policy is fairly standard in the franchise industry, as many brands aim to provide a consistent and transparent pricing structure for customers. By prohibiting surcharges, Atwell Suites aims to maintain a straightforward billing process and avoid potential customer dissatisfaction that could arise from unexpected fees. Franchisees need to factor in credit card processing fees as a cost of doing business when setting their prices.
However, the exception to this rule is important. If Card Organization Rules (such as those set by Visa or Mastercard) specifically require a surcharge in certain situations, then an Atwell Suites franchisee would be permitted to implement it. Franchisees should familiarize themselves with these rules and stay updated on any changes to ensure compliance. It is the franchisee's responsibility to understand and adhere to all applicable card organization rules regarding surcharges.