Legal Question in Business Law in California
Can a Franchisee business owner who runs a store that is "independently owned and operated" decide to start charging a 50 cent transaction fee on credit card purchases?
5 Answers from Attorneys
I don't know, but Congress just passed a law allowing merchants to give cash discounts, so your beef with the store over 50 cents is moot.
Moreover, they may be allowed to charge, it would depend on their contract with the franchise.
Check your franchise agreement, it is the 'law' on your arrangement.
The law doesn't forbid such charges. The owner's contract with the franchisor might or might not.
Any franchise attorney will say to check your franchise agreement AND operations manual. These are the controlling documents that govern the franchise relationship. Consult with a franchise attorney in your area for specifics.
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
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