Can Chicken Guy modify its requirements and designate additional approved methods of payment for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has the authority to modify payment requirements and designate additional approved payment methods. Franchisees must maintain relationships with credit and debit card issuers, check verification services, 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, and Chicken Guy can revoke approval of any service provider. This includes companies that provide services for electronic payment, such as near field communication vendors like Apple Pay and Google Wallet.
This means that as a Chicken Guy franchisee, you must comply with Chicken Guy's approved payment processing systems. Chicken Guy can change these systems, requiring you to adopt new payment methods or vendors. This could involve additional costs to update your point-of-sale systems or train employees on new procedures. Failure to comply with Chicken Guy's designated payment methods could result in a breach of the franchise agreement.
Furthermore, Chicken Guy requires franchisees to comply with the Payment Card Industry Data Security Standards, as revised by the PCI Security Standards Council. Franchisees must implement security requirements for merchants accepting credit and debit card payments. Chicken Guy can also modify the method by which franchisees pay royalty fees and other amounts owed, including advertising fees and interest charges, with written notice. Franchisees are not entitled to withhold any payments due to alleged non-performance by Chicken Guy or for any other reason.