factual

Must I comply with industry standards for data security at my Azal Coffee franchise?

Azal_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

You are responsible for securing the data of your customers. You must comply with industry standards and all applicable laws relating to the protection of customer information and other personal information. You must comply with the PCI Requirements in connection with your Store. It is recommended that you also comply with the ISO/IEC 27000-series information security standards (or other comparable third-party information security standards) ("Information Security Standards") in connection with the Store. It is your responsibility to research and understand the PCI Requirements and Information Security Standards, other industry standards, and applicable laws and to ensure that your business policies and practices comply with these requirements. You must periodically participate in audits of your information technology systems and data security policies by third party auditors as specified by us. We have the right to engage a vendor to consult with and advise you on compliance with the PCI Requirements and Information Security Standards and to require you to pay a portion of the cost of the vendor's services as determined under our policies or to directly engage the vendor for these purposes. Also, we will have the right to acquire a cyber insurance policy for our franchise system and to require you to pay a portion of the cost of the cyber insurance policy as determined under our policies and procedures.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)

What This Means (2024 FDD)

According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees are responsible for securing customer data and must comply with industry standards and all applicable laws related to protecting customer and personal information. Specifically, franchisees must adhere to the PCI Requirements in connection with their store.

While not mandatory, Azal Coffee recommends that franchisees also comply with the ISO/IEC 27000-series information security standards or other comparable third-party information security standards. It is the franchisee's responsibility to research and understand the PCI Requirements, Information Security Standards, other industry standards, and applicable laws to ensure their business policies and practices meet these requirements.

Azal Coffee franchisees must periodically participate in audits of their information technology systems and data security policies conducted by third-party auditors as specified by Azal Coffee. Azal Coffee retains the right to engage a vendor to consult with and advise franchisees on compliance with PCI Requirements and Information Security Standards, with the franchisee potentially required to pay a portion of the vendor's services. Azal Coffee also has the right to acquire a cyber insurance policy for the franchise system and require franchisees to pay a portion of the cost.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.