If Lees Famous Recipe establishes a PCI compliance program, what are the obligations of the franchisee?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to establish a PCI compliance program. Should we do so, you must follow such program, pay us or our designated third-party supplier the then-current monthly fee associated with the program, and sign our or our designated third-party supplier's standard form agreement related to your participation in the program.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–33)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, if Lees Famous Recipe establishes a Payment Card Industry (PCI) compliance program, franchisees must adhere to the program. This includes paying the then-current monthly fee to Lees Famous Recipe or their designated third-party supplier. Franchisees are also required to sign the standard form agreement provided by Lees Famous Recipe or their designated third-party supplier related to participation in the program.
Prior to the establishment of a PCI compliance program, franchisees must comply with all Payment Card Industry Data Security Standards (PCI/DSS) as revised by the PCI Security Standards Council. This involves implementing the security requirements mandated by the PCI Security Standards Council for merchants accepting credit and debit card payments. Franchisees must also demonstrate compliance upon request, potentially through an independent third-party PCI/DSS audit.
If a franchisee cannot demonstrate full compliance, Lees Famous Recipe may require them to engage the services of an approved vendor for ongoing assistance. This ensures that all locations meet the necessary security standards for processing card payments, reducing the risk of data breaches and maintaining customer trust. The costs associated with these compliance measures, including fees and vendor services, are the responsibility of the franchisee.