After the termination or expiration of the Aplus Franchise Agreement, how can the franchisee use the Information?
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, after the termination or expiration of the Franchise Agreement, the franchisee is generally prohibited from using the Information obtained during the franchise term, except to comply with post-term obligations outlined in the agreement. The term "Information" refers to all data the franchisor or its affiliates obtain from the franchisee or about the franchised business, including records and data concerning members of the franchised business. All revenues Aplus derives from this Information will be the Aplus's property.
During the term of the agreement, the franchisee can use information acquired from third parties in operating the franchised business, such as customer data, at their own risk and responsibility, provided it is lawful. However, information provided to Aplus or its affiliates regarding the franchisee and their affiliates becomes Aplus's property and can be used for any reason Aplus deems necessary.
Upon termination or expiration of the agreement, the franchisee must cease using any of the Information, except to the extent necessary to fulfill post-termination obligations as defined in the agreement. The franchisee also authorizes their payment processor to release the Information exclusively to Aplus and/or its designees after the agreement ends. This ensures that Aplus retains control over the data and can continue to use it for its own purposes, while the franchisee's access is restricted to compliance with any remaining duties under the terminated agreement.