What payment systems is a Buona franchisee required to accept as part of operating the franchised business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Franchisee shall make arrangements for and accept payments systems which Franchisee designates from time to time, as part of the operation of the Franchised Business, including but not limited to credit card payments through Visa, MasterCard, and other credit card and debit card issuers and sponsors, check verification services, electronic funds transfer systems, mobile payment systems, and system-wide gift card programs. 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 Manuals 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.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees must arrange for and accept payment systems that Buona designates. These include credit card payments through Visa, MasterCard, and other credit and debit card issuers, check verification services, electronic funds transfer systems, mobile payment systems, and system-wide gift card programs.
Buona franchisees are also responsible for ensuring their point-of-sale and payment processing systems comply with current Payment Card Industry Data Security standards, all applicable data privacy laws, and any procedures outlined in the manuals to prevent credit card fraud. This compliance is an ongoing obligation.
Furthermore, the franchisee is responsible for defending and indemnifying Buona from any losses, costs, expenses, taxes, damages, and liabilities resulting from the franchisee's failure to comply with Payment Credit Industry Data Security Standards or data privacy laws. This means that if a franchisee's non-compliance leads to a data breach or other security issue, they are responsible for covering Buona's associated costs and legal liabilities.