Is a Dq Treat franchisee restricted from accepting universally accepted credit or debit cards during the agreement term?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in the foregoing shall restrict or prohibit Operated Locations, Participating Franchisee or Sub-Franchisee from accepting any Visa, MasterCard, American Express, Discover or other universally accepted credit or debit card or from participating in any "open network" gift card program with other merchants.
For purposes of clarification, a "closed network" program refers to a program in which a gift card is accepted only by the issuing merchant, and an "open network" program refers to a program in which a single gift card is accepted by more than one unaffiliated merchants.
During the Term of this Agreement, Operated Locations, Participating Franchisee or Sub Franchisee shall have the right to accept a mall issued gift card.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, franchisees are not restricted from accepting universally accepted credit or debit cards during the agreement term. The participation agreement with GIFT (First Data Resources, LLC) does not prevent franchisees from accepting Visa, MasterCard, American Express, Discover, or other universally accepted credit or debit cards.
This clause ensures that Dq Treat franchisees can process payments through standard payment methods, providing flexibility and convenience for customers. It also allows franchisees to participate in "open network" gift card programs, where a single gift card is accepted by multiple unaffiliated merchants, in addition to the brand's own closed network gift card program.
The FDD clarifies the difference between "closed network" and "open network" programs. A closed network program is one where a gift card is accepted only by the issuing merchant, while an open network program allows a gift card to be used at multiple, unaffiliated merchants. This distinction is important for understanding the scope of the exclusivity granted to GIFT for the closed network program and the freedom Dq Treat franchisees have in accepting other forms of payment.
Furthermore, Dq Treat franchisees retain the right to accept mall-issued gift cards during the term of the agreement. This provision offers additional flexibility in payment options and allows franchisees to capture sales from customers using mall-specific gift cards, enhancing their potential customer base and sales volume.