Is a Checkersrallys franchisee responsible for providing notices of breach or compromise of customer credit card information?

According to Checkersrallys's 2025 Franchise Disclosure Document, the franchisee bears the responsibility for providing notices related to breaches or compromises of customer credit card information. This includes all duties to monitor credit histories and transactions concerning customers of their franchised restaurant.

This means that if a Checkersrallys restaurant experiences a data breach that affects customer credit card information, the franchisee is legally obligated to inform the affected customers. This responsibility includes not only notifying customers of the breach but also monitoring credit histories and transactions to detect any fraudulent activity.

The franchisee must also use the systems and equipment that Checkersrallys requires for processing credit cards, and the franchisee bears the costs associated with this. Furthermore, the franchisee must adhere to the Payment Card Industry (PCI) Data Security Standards and all other security standards and guidelines published by payment card companies applicable to customer credit and debit card information. If a security breach is suspected, the franchisee must immediately notify Checkersrallys and promptly identify and fix the source of the compromise.

This requirement places a significant burden on the franchisee, as they must invest in systems and procedures to protect customer data and respond appropriately in the event of a breach. Failure to comply with these obligations could result in legal and financial repercussions for the franchisee.