What are the requirements for P2PE solutions for Moes Southwest Grill franchisees?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to purchase most of the components of the Computer System that we specify from Approved Suppliers. Currently, we have Approved Suppliers for our POS System and for certain software that you must use in your Restaurant, including the Learning Management System. We also require you to use designated Approved Suppliers for point-to-point encryption ("P2PE") solutions (hardware and software) that are used in cooperation with your POS System to provide secure and compliant payment processing services. If we require you to use any proprietary software or to purchase any software from a designated vendor, you must execute any software license agreements that we or the licensor of the software require and any related software maintenance agreements. We may require you to maintain certain network connections, which may include using an Internet Service Provider or other communications provider that we approve or designate. Currently, we require you to obtain the POS System from our designated vendor (and we may collect from you the related upfront and ongoing fees for such POS System and pay the vendor on your behalf) and POS System support services from our affiliate. We may require you to maintain other support service contracts and/or maintenance service contracts from us, our affiliates, or designated Approved Suppliers.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 47–51)
What This Means (2025 FDD)
According to the 2025 Moes Southwest Grill Franchise Disclosure Document, franchisees are required to use designated Approved Suppliers for point-to-point encryption ("P2PE") solutions. These solutions include both hardware and software components that work with the POS system to ensure secure and compliant payment processing services.
This requirement means that franchisees do not have the freedom to choose their own P2PE providers. Instead, they must select from a list of suppliers that Moes Southwest Grill has already vetted and approved. This is intended to maintain consistent security standards across all franchise locations and to protect customer payment information.
For a prospective franchisee, this requirement translates into a potentially limited selection of P2PE solutions and associated costs. While using approved suppliers ensures compliance and security, it may also mean less flexibility in negotiating prices or choosing a system that best fits their specific needs. Franchisees should inquire about the number of approved suppliers, the range of costs associated with their P2PE solutions, and the process for adding or changing approved suppliers in the future.