Must I use Bang Cookies' designated supplier for credit card processing?

According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees must use the franchisor's designated supplier and vendor for credit card processing. This credit card processing may be integrated with the point of sale system that Bang Cookies designates.

This requirement means a prospective Bang Cookies franchisee will not be able to shop around for the best rates or use a preferred vendor for credit card processing. Instead, they are obligated to use Bang Cookies' chosen supplier, potentially impacting profitability if the rates are not competitive. The FDD also states that credit card processing fees will generally be based on a percentage of all credit card processed Gross Sales.

It is common in franchising to require franchisees to use specific vendors to maintain brand consistency and quality control. However, it is important for a prospective franchisee to fully understand the costs associated with these designated vendors and how they compare to market rates. Franchisees should also inquire whether Bang Cookies receives any rebates or other benefits from the designated supplier, as this could influence the supplier selection. Bang Cookies does state that as of the issuance date of the 2024 Disclosure Document, they have not received revenue from suppliers from franchisee purchases of source restricted products or services.