What payment card industry requirements must an Azal Coffee franchisee comply with?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
We will have the right to engage a vendor to consult with and advise Azal Coffee franchisees on compliance with the PCI Requirements and Information Security Standards and to require you to pay a portion of the cost of the vendor's services as determined under our policies and procedures or to directly engage the vendor for these purposes. Also, we have the right to acquire a cyber insurance policy for the Azal Coffee franchise system and to require you to pay a portion of the cost of the cyber insurance policy as determined under our policies and procedures. We will have the
right to collect your share of the costs of the vendor and/or cyber insurance policy on a periodic basis in the manner provided in Section 4.13 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees must comply with Payment Card Industry (PCI) requirements and Information Security Standards. Azal Coffee retains the right to engage a vendor to advise franchisees on PCI compliance and can require franchisees to cover a portion of the vendor's costs, as determined by Azal Coffee's policies. Alternatively, Azal Coffee can directly engage the vendor for these services.
In addition to PCI compliance, Azal Coffee has the right to acquire a cyber insurance policy for the entire franchise system and may require franchisees to pay a portion of the cost, according to their established policies and procedures. The method for collecting the franchisee's share of these vendor costs and/or cyber insurance policy expenses will be consistent with the payment terms outlined in Section 4.13 of the agreement.
This means that as a prospective Azal Coffee franchisee, you should be prepared to budget for potential expenses related to PCI compliance assistance and cyber insurance. The exact amount will depend on Azal Coffee's chosen vendors, the cost of the cyber insurance policy, and the allocation method defined in their policies. It is important to clarify these potential costs with Azal Coffee during your due diligence to accurately assess the financial obligations of owning a franchise.