How can 1 800 Packouts and its affiliates use Customer Information?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
C. CUSTOMER INFORMATION
- (1) You must comply with our System Standards, other directions from us, and all applicable laws and regulations regarding the organizational, physical, administrative and technical measures and security procedures to safeguard the confidentiality and security of Customer Information on your Management Systems or otherwise in your possession or control and, in any event, employ reasonable means to safeguard the confidentiality and security of Customer Information. "Customer Information" means names, contact information, financial information and other personal information of or relating to the Franchised Business' customers, prospective customers, and referral sources. If there is a suspected or actual breach of security or unauthorized access involving your Customer Information, you must notify us immediately after becoming aware of such actual or suspected occurrence and specify the extent to which Customer Information was compromised or disclosed. You are responsible for any financial losses you incur or remedial actions that you must take as a result of a breach of security or unauthorized access to Customer Information in your control or possession.
- (2) You agree that all Customer Information that you collect from customers and potential customers in connection with your Franchised Business is deemed to be owned by us, and must be furnished to us at any time that we request it. In addition, we and our affiliates may, through the Management Systems or otherwise, have independent access to Customer Information.
- (3) You have the right to use Customer Information while this Agreement or a successor franchise agreement is in effect, but only to market products and services under the Marks to customers in accordance with the policies that we establish periodically and applicable law. You may not sell, transfer, or use Customer Information for any purpose other than marketing products and services under the Marks. We and our affiliates may use Customer Information in any manner or for any purpose, except, during the Term, we and our affiliates will not use the Customer Information that we or they derive from your Franchised Business to market similar products and services for another brand that competes directly with the Franchised Business. You must secure from your customers, prospective customers, and others all consents and authorizations, and provide them all disclosures, that applicable law requires to transmit Customer Information to us and our affiliates, and for us and our affiliates to use that Customer Information, in the manner that this Agreement contemplates.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, 1 800 Packouts and its affiliates have broad rights to use customer information obtained from a franchisee's business. 1 800 Packouts considers all customer information collected by a franchisee to be owned by them and requires that this information be furnished to them upon request. Customer Information includes names, contact information, financial information, and other personal information relating to the Franchised Business' customers, prospective customers, and referral sources.
1 800 Packouts and its affiliates can independently access customer information through the Management Systems or other means. While the franchise agreement is in effect, the franchisee has the right to use customer information, but only to market products and services under the 1 800 Packouts Marks, in accordance with the policies established by 1 800 Packouts and applicable law. The franchisee is specifically prohibited from selling, transferring, or using customer information for any purpose other than marketing products and services under the 1 800 Packouts Marks.
1 800 Packouts and its affiliates have the right to use customer information in any manner or for any purpose. However, during the term of the franchise agreement, 1 800 Packouts and its affiliates will not use customer information derived from the franchisee's business to market similar products and services for another brand that competes directly with the Franchised Business. The franchisee is responsible for securing all necessary consents, authorizations, and disclosures from customers and prospective customers required by applicable law to transmit customer information to 1 800 Packouts and its affiliates, and for them to use that information as contemplated in the agreement.
This arrangement is fairly typical in franchising, where the franchisor seeks to maintain control over customer data to support brand-wide marketing efforts and maintain consistency. However, it's important for a prospective 1 800 Packouts franchisee to understand the extent to which 1 800 Packouts can utilize customer data and to ensure they are prepared to comply with all applicable data privacy laws and obtain the necessary consents from customers.