What is the procedure for a Dog Haus franchisee to engage subcontractors to process credit cards?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall be and remain responsible for the security of cardholder data in the possession or control of any subcontractors Franchisee engages to process credit cards.
All subcontractors must be identified to and approved by Franchisor in writing prior to sharing cardholder data with the subcontractor.
Franchisee shall, if requested to do so by Franchisor, provide appropriate documentation to Franchisor to demonstrate compliance with applicable PCI DSS requirements by Franchisee and all identified subcontractors.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, franchisees are permitted to engage subcontractors to process credit cards, but specific procedures must be followed. The franchisee remains responsible for the security of cardholder data, even when a subcontractor is used. Prior to sharing cardholder data with any subcontractor, the franchisee must identify the subcontractor to Dog Haus and receive written approval from Dog Haus.
Dog Haus franchisees are also required to maintain the security of cardholder data and adhere to the Payment Card Industry Data Security Standards (PCI DSS) throughout the term of the franchise agreement. These standards are available at www.pcisecuritystandards.org. If requested by Dog Haus, the franchisee must provide documentation demonstrating compliance with PCI DSS requirements for both themselves and any subcontractors used.
This requirement ensures that all parties handling customer credit card information meet security standards, reducing the risk of data breaches and protecting both the customer and the Dog Haus brand. It is common practice in franchising to have strict requirements around data security and the use of third-party vendors, especially when dealing with sensitive financial information. Franchisees should carefully vet potential subcontractors and ensure they meet all PCI DSS requirements before seeking approval from Dog Haus.
Failure to comply with these requirements could result in a breach of the franchise agreement and potential liability for any resulting damages from security breaches. Therefore, franchisees must prioritize data security and adhere to the outlined procedures when engaging subcontractors for credit card processing.