Who owns the Customer Information collected by a 1 800 Packouts franchisee?
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 1 800 Packouts's 2025 Franchise Disclosure Document, 1 800 Packouts owns the customer information that a franchisee collects. Customer Information includes names, contact information, financial information, and other personal information relating to the franchised business's customers, prospective customers, and referral sources. The franchisee must comply with all System Standards and applicable laws to safeguard the confidentiality and security of customer information.
1 800 Packouts franchisees have the right to use customer information while the Franchise Agreement is in effect, 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. Franchisees are not allowed to sell, transfer, or use customer information for any purpose other than marketing products and services under the Marks.
1 800 Packouts and its affiliates have independent access to Customer Information through the Management Systems or otherwise. 1 800 Packouts and its affiliates can use Customer Information in any manner or for any purpose, except during the term, they will not use the Customer Information that they derive from the franchisee's Franchised Business to market similar products and services for another brand that competes directly with the Franchised Business.
1 800 Packouts franchisees must secure all necessary consents and authorizations from customers and provide all required disclosures to transmit Customer Information to 1 800 Packouts and its affiliates, allowing them to use that Customer Information as contemplated in the agreement. Franchisees are responsible for any financial losses or remedial actions resulting from a security breach or unauthorized access to Customer Information in their control or possession.