Who is responsible for unauthorized use and disclosure of Confidential Information by employees or owners of the Anago Subfranchise Rights Business?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Subfranchisor must implement all administrative, physical and technical safeguards necessary to protect any information that can be used to identify an individual, including names, addresses, telephone numbers, e-mail addresses, employee identification numbers, signatures, passwords, financial information, credit card information, biometric or health data, governmentissued identification numbers and credit report information ("Personal Information") in accordance with applicable law and industry best practices. It is entirely Subfranchisor's responsibility (even if Franchisor provides Subfranchisor any assistance or guidance in that regard) to confirm that the safeguards Subfranchisor uses to protect Personal Information comply with all applicable laws and industry best practices related to the collection, access, use, storage, disposal and disclosure of Personal Information. If Subfranchisor becomes aware of a suspected or actual breach of security or unauthorized access involving Personal Information, Subfranchisor will notify Franchisor immediately and specify the extent to which Personal Information was compromised or disclosed.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 43)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the Subfranchisor is responsible for the unauthorized use or disclosure of confidential information by their employees or owners. The Subfranchisor must implement administrative, physical, and technical safeguards to protect personal information, including names, addresses, phone numbers, financial information, and other identifying data. This responsibility extends to ensuring that these safeguards comply with all applicable laws and industry best practices related to the collection, access, use, storage, disposal, and disclosure of Personal Information.
The Subfranchisor is obligated to ensure all individuals with access to Anago's confidential information, such as the Anago Manuals, sign a confidentiality agreement that identifies Anago as a third-party beneficiary with the right to enforce the agreement. The Subfranchisor must also treat the Anago Manuals and other confidential information as confidential, using their best efforts to maintain its secrecy. They are required to limit access to the manuals to employees with a need-to-know and report any theft, loss, or destruction of the manuals to Anago immediately.
If a breach of security or unauthorized access to personal information occurs or is suspected, the Subfranchisor is required to notify Anago immediately, detailing the extent to which personal information was compromised or disclosed. The Subfranchisor bears the ultimate responsibility for maintaining information security and adhering to confidentiality protocols, even if Anago provides assistance or guidance in these matters. This includes ensuring that employees and owners understand and comply with these obligations to protect Anago's confidential information and personal data.