Who owns the information obtained from the Aplus franchisee or about the Aplus Franchised Business?
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, Aplus owns the information it or its affiliates obtain from the franchisee or about the franchised business. This includes all information in the records or concerning the members of the franchised business. Aplus also owns all revenues derived from this information and can use it as deemed necessary or appropriate.
However, the franchisee can use information acquired from third parties in operating their Aplus franchise, such as customer data, to the extent lawful and at their own risk and responsibility. This excludes information provided to Aplus or its affiliates regarding the franchisee and their affiliates, including their officers, directors, shareholders, partners, or equity members. This information becomes Aplus's property and can be used for any reason Aplus deems necessary.
The franchisee authorizes their payment processor to release information to Aplus at any time. After the termination or expiration of the franchise agreement, the franchisee can no longer use any of the information, except to comply with post-term obligations. The franchisee also authorizes their payment processor to release the information exclusively to Aplus and/or its designees after termination or expiration of the agreement.
This clause gives Aplus broad rights to use franchisee data for its own purposes, which is a common practice in franchising. However, franchisees should be aware of the extent of data collection and how it will be used, especially concerning customer data and financial performance. Franchisees should also understand their obligations regarding data usage after the franchise agreement ends.