Is a 1 800 Packouts franchisee allowed to sell 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 1 800 Packouts Franchise Disclosure Document, franchisees are explicitly prohibited from selling customer information. The FDD defines "Customer Information" as names, contact information, financial information, and other personal information related to the franchised business's customers, prospective customers, and referral sources.
The agreement states that all Customer Information collected by a 1 800 Packouts franchisee is considered the property of 1 800 Packouts itself and must be provided to them upon request. While franchisees have the right to use this information to market products and services under the 1 800 Packouts brand, this use is restricted to align with the policies established by 1 800 Packouts and applicable laws.
This means a franchisee cannot transfer or use customer information for any purpose outside of marketing 1 800 Packouts's products and services. 1 800 Packouts and its affiliates, however, retain the right to use customer information in any manner or for any purpose, with the exception that they will not use information derived from a franchisee's business to market similar services for a directly competing brand during the term of the agreement. Franchisees are also responsible for obtaining all necessary consents and authorizations from customers to allow the transmission and use of their information as outlined in the agreement.