The short answer
A franchise program aggregates group volume to secure pricing no individual location could obtain, while each franchisee keeps its own merchant ID and settlement account. The franchisor gets consistent reporting; the franchisee gets a better rate than they could negotiate alone.
Mandate or recommend?
Mandated programs deliver the best pricing but must be handled carefully within franchise agreements and local law. Recommended programs with materially better rates achieve most of the benefit with less friction.
Consistency in compliance
Surcharge and dual pricing programs must be configured per jurisdiction. A national mandate applied uniformly will be non-compliant in several states and provinces.
Key takeaways
- Aggregate volume, separate settlement
- Check franchise agreement and local law before mandating
- Configure compliance programs per jurisdiction
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