Gift Card Policies

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Abacus

Posted 11/12/2009 5:18:59 PM

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Last Login: 11/12/2009 6:26:23 PM
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I am researching the gift card policies of Franchisors. I would like to find out how the sales / remittance policy works at other franchise groups. I have experience with a group with the following policy and want to find out if this is unusual or the norm;

Policy: When a gift card is sold at a retail loction the franchise owner pays the Franchisor the full amount. When a gift card is redeemed the Franchisor pays the full amount to the franchise owner where the gift card is redeemed.

Under this policy the Franchisor acts as the Fed Reserve and holds the "float".

Is this a common or uncommon policy?

Post #791