What are the required measures for a 1 800 Packouts franchisee to safeguard Customer Information?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 must adhere to specific standards and legal requirements to protect customer information. This includes implementing organizational, physical, administrative, and technical measures, along with security procedures, to ensure the confidentiality and security of customer information stored in their management systems or otherwise in their possession. Franchisees must employ reasonable means to safeguard this information. Customer Information includes names, contact information, financial information, and other personal information relating to customers, prospective customers, and referral sources of the Franchised Business.
In the event of a suspected or actual breach of security or unauthorized access to customer information, the franchisee is obligated to immediately notify 1 800 Packouts, detailing the extent of the compromise or disclosure. The franchisee is financially responsible for any losses incurred or remedial actions required due to such breaches or unauthorized access if it was in their control or possession.
All customer information collected by the franchisee in connection with the Franchised Business is deemed owned by 1 800 Packouts and must be provided to them upon request. 1 800 Packouts and its affiliates have independent access to this information through the management systems or other means. Franchisees are permitted to use customer information to market products and services under the 1 800 Packouts Marks, following established policies and applicable laws. However, franchisees are prohibited from selling, transferring, or using customer information for any purpose other than marketing 1 800 Packouts products and services. Franchisees must obtain all necessary consents and authorizations from customers and provide all legally required disclosures to transmit customer information to 1 800 Packouts and its affiliates, allowing them to use the information as contemplated in the agreement.