Is a Chicken Guy franchisee required to accept non-cash payment systems specified by Chicken Guy, including participation in loyalty programs?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
F. Non-Cash Payment Systems and PCI Compliance.
(1) Within a reasonable period of time following Chicken Guy's request, Franchisee shall accept debit cards, credit cards, stored value gift cards or other non-cash payment systems, including participation in loyalty programs, specified by Chicken Guy to enable customers to purchase authorized products and shall obtain all necessary hardware and/or software used in connection with these non-cash systems. Franchisee shall comply with all policies and procedures set forth by Chicken Guy in the Manual with respect to these non-cash payment systems.
- (2) Franchisee shall maintain, at all times, credit-card relationships with the creditand debit-card issuers or sponsors, check or credit verification services, financial-center services, merchant service providers, and electronic-fund-transfer systems (together, "Credit Card Vendors") that Chicken Guy may periodically designate as mandatory. Franchisee shall not to use any Credit Card Vendor for which Chicken Guy has not given its prior written approval or as to which Chicken Guy has revoked its earlier approval. The term "Credit Card Vendors" includes, among other things, companies that provide services for electronic payment, such as near field communication vendors (e.g., "Apple Pay" and "Google Wallet"). Chicken Guy has the right to modify its requirements and designate additional approved or required methods of payment and vendors for processing such payments, and to revoke its approval of any service provider. Franchisee shall comply with Chicken Guy's policies regarding acceptance of payment by credit and/or debit cards, including for example minimum purchase requirements for a customer's use of a credit card (Chicken Guy may set these requirements in the Manual).
- (3) Franchisee shall comply with the then-current Payment Card Industry Data Security Standards as those standards may be revised and modified by the PCI Security Standards Council, LLC (see www.pcisecuritystandards.org), or any successor organization or standards that Chicken Guy may reasonably specify. Among other things, Franchisee agrees to implement the enhancements, security requirements, and other standards that the PCI Security Standards Council (or its successor) requires of a merchant that accepts payment by credit and/or debit cards.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, franchisees are required to accept non-cash payment systems. Within a reasonable time after Chicken Guy's request, franchisees must accept debit cards, credit cards, stored value gift cards, and other non-cash payment systems, including participation in loyalty programs, as specified by Chicken Guy. To facilitate these payments, franchisees must obtain all necessary hardware and/or software and comply with all policies and procedures outlined in the manual regarding these non-cash payment systems.
Chicken Guy franchisees must also maintain relationships with credit and debit card issuers, check or credit verification services, financial-center services, merchant service providers, and electronic-fund-transfer systems that Chicken Guy designates as mandatory. Franchisees cannot use any Credit Card Vendor without Chicken Guy's prior written approval or if Chicken Guy has revoked its approval. Chicken Guy can modify its requirements, designate additional approved or required payment methods and vendors, and revoke approval of any service provider. Franchisees must comply with Chicken Guy's policies regarding credit and debit card acceptance, including any minimum purchase requirements.
Furthermore, Chicken Guy franchisees must adhere to the Payment Card Industry Data Security Standards, as revised by the PCI Security Standards Council. This includes implementing enhancements, security requirements, and other standards required of merchants accepting credit and/or debit card payments. These comprehensive requirements ensure that Chicken Guy maintains consistent payment processing standards across all franchise locations, protecting both the brand and its customers.