Who bears the costs associated with the credit card processing system required by Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.10 Credit Cards.
You agree to use the system and equipment we require for processing credit cards and any costs to do so are at your expense.
You agree to abide by (i) the Payment Card Industry ("PCI") Data Security Standards enacted by the applicable Card Associations (as they may be modified at any time and from time to time or as successor standards are adopted); and (ii) all other security standards and guidelines that may be published at any time and from time to time by payment card companies and applicable to customer credit card and debit card information.
If you know or suspect a security breach, you must immediately notify us.
You will promptly identify and remediate the source of the compromise.
You assume all responsibility for providing all notices of breach or compromise and all duties to monitor credit histories and transaction concerning customers of your Franchised Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the franchisee is responsible for the costs associated with the credit card processing system. Specifically, the franchisee must use the system and equipment that Checkers requires for processing credit cards, and the franchisee bears all costs associated with using that system.
This means that a prospective Checkers franchisee needs to factor in the expenses related to credit card processing when evaluating the potential profitability of the franchise. These costs can include equipment purchase or lease, software, transaction fees, and maintenance. It is important for franchisees to understand these costs upfront as they can impact the overall financial performance of the restaurant.
Furthermore, the franchisee is responsible for complying with Payment Card Industry (PCI) Data Security Standards and all other security standards and guidelines related to customer credit and debit card information. The franchisee also assumes all responsibility for providing notices of breach or compromise and all duties to monitor credit histories and transactions concerning customers of their franchised restaurant. This highlights the importance of data security and compliance for Checkers franchisees.