What payment systems is a Buona franchisee required to accept?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's point-of-sale system and related payment processing systems must be compliant with current Payment Card Industry Data Security standards, all applicable data privacy laws, and any procedures required by the Manual to prevent credit card fraud.
Franchisee shall defend at its own cost and indemnify and hold harmless Franchisor, its shareholders, directors, officers, employees and agents, from and against any and all loss, costs, expenses (including attorneys' fees), taxes, damages and liabilities, however caused, resulting directly or indirectly from Franchisee's failure to comply with Payment Credit Industry Data Security Standards or data privacy laws.
10.11 Gift Cards/Loyalty Programs. Franchisee agrees:
(a) to offer for sale gift cards and/or the loyalty program, which must be in the form and version designated by Franchisor ("Official Gift Card/Loyalty Program"), as it may be amended from time to time;
(b) not to offer for sale or give away any form of Gift Card or Loyalty Program other than the Official Gift Card/Loyalty Program;
(c) not to create Franchisee's own Gift Card or Loyalty Program;
(d) to accept and honor the Official Gift Card/Loyalty Program in exchange for product when presented for redemption at Franchisee's Store;
(e) to obtain and maintain whatever is the currently designated equipment and/or software necessary to process the authorized Gift Cards/Loyalty Program, which may be through a Mobile Application; and
(f) to comply with any policy promulgated by Franchisor regarding changes to the form and use of Gift Card/Loyalty Program, including transition periods for the phasing in of modifications to the Official Gift Card/Loyalty Program.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees must ensure their point-of-sale and payment processing systems comply with Payment Card Industry Data Security standards, all relevant data privacy laws, and any procedures outlined in the manual to prevent credit card fraud. This means a Buona franchisee needs to invest in secure and compliant technology to protect customer data and prevent fraud. Failure to comply with these standards could result in the franchisee being responsible for covering losses, costs, expenses, and legal fees resulting from non-compliance.
Buona franchisees are also obligated to offer for sale and accept the brand's official gift cards and loyalty programs. Franchisees cannot offer any other form of gift card or loyalty program besides the official one designated by Buona. They must also obtain and maintain the necessary equipment and software to process these official gift cards and loyalty programs, potentially through a mobile application.
These requirements ensure uniformity and brand consistency across all Buona locations, as is typical in franchising. By mandating specific payment processing standards and loyalty programs, Buona aims to maintain a secure and consistent customer experience. A prospective franchisee should factor in the costs of implementing and maintaining these required systems and programs when evaluating the overall investment.