What data security standard must a Fat Shack franchisee comply with?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must accept credit cards, debit cards and Apple Pay from customers of its FAT SHACK Restaurant.
The Payment Card Industry ("PCI") requires all companies that process, store, or transmit credit or debit card information to protect the cardholders' information by complying with the PCI Data Security Standard ("PCI DSS").
Therefore, Franchisee shall be PCI compliant by following and adhering to the then-current PCI DSS, currently found at www.pcisecuritystandards.org, or any similar or subsequent standard for the protection of cardholder data throughout the term of this Agreement.
Franchisee's FAT SHACK Restaurant shall be in compliance with PCI DSS at all times.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee must comply with the Payment Card Industry (PCI) Data Security Standard (DSS). This standard is in place because the Payment Card Industry requires all companies that process, store, or transmit credit or debit card information to protect cardholder information.
For a prospective Fat Shack franchisee, this means they must adhere to the then-current PCI DSS throughout the term of their Franchise Agreement. The current PCI DSS can be found at www.pcisecuritystandards.org, but Fat Shack notes that this may be superseded by a similar or subsequent standard. The franchisee's Fat Shack restaurant must be in compliance with PCI DSS at all times.
This requirement is common in franchise systems, especially those that handle credit card transactions. Compliance with PCI DSS involves implementing various security measures, such as installing firewalls, encrypting data, using strong passwords, and regularly updating security systems. Failure to comply with PCI DSS can result in fines, penalties, and even the suspension of the ability to process credit card payments, which could significantly impact the Fat Shack restaurant's operations and revenue.