What information obtained by Aplus Franchisor or its affiliates from the Franchisee or about the Franchised Business becomes the Franchisor's property?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.8.3. All of the information the Franchisor or its affiliates obtain from the Franchisee or about the Franchised Business, and all information in the records or concerning the members of the Franchised Business ("the Information") and all revenues the Franchisor derive from the Information will be the Franchisor's property. However, the Franchisee may at any time during the term of this Agreement use in the operation of the Franchised Business (but for no other purpose), to the extent lawful and at the Franchisee's sole risk and responsibility, any information that the Franchisee acquire from third parties in operating your Franchised Business, such as customer data. The information (except for information the Franchisee provide to the Franchisor or its affiliates with respect to the Franchisee and the Franchisee's affiliates, including the Franchisee's respective officers, directors, shareholders, partners or equity members of the entity) will become the Franchisor's property which the Franchisor may use for any reason as the Franchisor deem necessary or appropriate in its discretion. The Franchisee hereby authorize the Franchisee's payment processor to release the information to the Franchisor at any time. Following termination or expiration of this Agreement the Franchisee will no longer use any of the Information, except to comply with the Franchisee's post-term obligations under this Agreement and the Franchisee authorize the Franchisee's payment processor to release the Information exclusively to the Franchisor and/or its designees.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, all information the Aplus Franchisor or its affiliates obtain from the franchisee or about the franchised business, including information in the records or concerning the members of the franchised business, and all revenues the franchisor derives from the information will become the franchisor's property. This excludes information the franchisee provides to the franchisor or its affiliates regarding the franchisee and their affiliates, including their respective officers, directors, shareholders, partners, or equity members. The franchisor may use this information for any reason they deem necessary or appropriate.
The franchisee authorizes their payment processor to release this information to Aplus at any time. Upon termination or expiration of the franchise agreement, the franchisee is prohibited from using any of this information, except to comply with post-term obligations outlined in the agreement. The franchisee also authorizes their payment processor to release the information exclusively to the franchisor and/or its designees after termination or expiration.
This clause has significant implications for a prospective Aplus franchisee. It means that Aplus has broad rights to collect and use data related to the franchisee's business operations and customer information. While the franchisee can use information acquired from third parties in operating their franchised business, Aplus retains ownership and control over most of the data generated or collected through the Aplus system. Franchisees should carefully consider the extent to which they are comfortable with Aplus having access to and control over their business data and customer information.