What is the scope of Bombs Away Franchising's discretion regarding acceptable payment methods for a Bombs Away franchise?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.10 Payment Systems. Franchisee shall accept payment from customers in any form or manner designated by Bombs Away Franchising (which may include, for example, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems).
Franchisee shall purchase or lease all equipment and enter into all business relationships necessary to accept payments as required by Bombs Away Franchising.
Franchisee must at all times comply with payment card industry data security standards (PCI-DSS).
- 7.11 Gift Cards, Loyalty Programs, and Incentive Programs. At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Bombs Away Franchising, in the manner specified by Bombs Away Franchising in the Manual or otherwise in writing.
Franchisee shall honor all valid gift cards and other pre-paid systems, regardless of whether issued by Franchisee or another Bombs Away business.
Franchisee shall comply with all procedures and specifications of Bombs Away Franchising related to gift cards, certificates, and other pre-paid systems, or related to customer loyalty, membership/subscription, or customer incentive programs.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising has broad discretion over the payment methods franchisees must accept from customers. Bombs Away designates the acceptable forms and manners of payment. These can include cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems. This means a franchisee must be prepared to invest in the equipment and systems necessary to handle all payment types Bombs Away requires.
This requirement extends beyond just accepting payments from customers. Franchisees must also adhere to Payment Card Industry Data Security Standards (PCI-DSS) at all times. This involves implementing and maintaining security measures to protect cardholder data. The franchisee bears the responsibility for purchasing or leasing all necessary equipment and establishing the business relationships needed to comply with Bombs Away's payment requirements.
Furthermore, Bombs Away also dictates participation in gift card, loyalty, and incentive programs. Franchisees are obligated to sell gift cards and participate in loyalty programs as specified by Bombs Away. They must honor all valid gift cards, even those not issued by their specific franchise location, and comply with all procedures related to these programs. This gives Bombs Away significant control over how franchisees handle customer transactions and incentives, potentially impacting a franchisee's operational costs and marketing strategies.