What security measures is a Benjamin Franklin Plumbing franchisee required to implement to protect data?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
f of Franchisor, or (ii) at the direction of the consumer, then the following restrictions shall apply to Franchisee's use of such Personal Information: Franchisee shall not (i) sell, rent, release, disseminate, make available, transfer, or otherwise communicate orally, in writing, or by electronic or other means, Personal Information; (ii) retain, use, or disclose Personal Information for any purpose other than fulfilling the purpose for which it was provided and as permitted in this Agreement, including any restrictions set forth in Section 10; or (iii) retain, use, or disclose Personal Information outside of the direct business relationship between Franchisor and Franchisee. If Franchisor provides Personal Information to Franchisee, Franchisee certifies that it understands and will comply with the restrictions and obligations under any applicable laws on such Personal Information. Upon Franchisor's request, Franchisee shall provide reasonable assistance to Franchisor in complying with any request from a consumer to exercise rights under any applicable law. Without limiting the foregoing, upon Franchisor's request, Franchisee shall delete some or all Personal Information that Franchisee maintains.
8.8.2 You are required to implement industry-standard administrative, physical, and technical security measures and devices to protect data from unauthorized access, acquisition, loss, destruction, disclosure or transfer. Without limiting the foregoing, you agree to comply with the then-current Payment Card Industry Data Security Standards (PCI/DSS), as those standards may be revised by the PCI Security Standards Council, LLC (see www.pcisecuritystandards.org) or successor organization; to implement the security requirements that the Council (or its successor) requires of a merchant that accepts payment by credit and/or debit cards; and to complete PCI/DSS audits as and when required by the standards. Compliance with PCI/DSS is not a guarantee that a security breach will not occur. Any losses or expenses we incur as a result of an actual or suspected security breach will be subject to indemnification under Section 20.
- 8.9. Data and Network Security. You are required to implement industry-standard administrative, physical, and technical security measures and devices to protect data (whether Personal Information, Customer Data, Confidential Information, intellectual property, or other data) and any portion of the Franchised Business from unauthorized access, acquisition, loss, destruction, disclosure or transfer. Franchisee is solely responsible for protecting the Franchised Business from computer viruses, bugs, power disruptions, communication line disruptions, Internet access failures, Internet content failures, and attacks by hackers and other unauthorized intruders. Franchisee waives any and all claims Franchisee may have against Franchisor as the direct or indirect result of such disruptions, failures or attacks. Franchisee is also required to use best efforts to verify that Franchisee's suppliers, lenders, landlords, customers, and governmental agencies on which Franchisee relies, are reasonably protected. This includes best efforts to secure Franchisee's systems, including, but not limited to, use of firewalls, access code protection, anti-virus systems, and backup systems. In the event of a known or suspected security breach, you agree to notify us promptly and comply with applicable laws and any instructions from us regarding response to the breach.
- 8.10. Late Report Fee. To encourage prompt delivery of all Gross Revenue reports, Customer Data, Certificates of Insurance, and any other reports or records required or that may be requested by Franchisor under this Agreement, Franchisee shall pay, upon demand, for each report or record that Franchisee fails to deliver when due, a late report fee under Section 7.8.
- 8.11. Third Party Information. Franchisee hereby authorizes Franchisor and its agents and representatives to make credit and background checks of Franchisee and Owners, and to make inquiries of Franchisee's bank, suppliers, and trade creditors concerning the Franchised Business. Franchisee hereby directs such persons and companies to provide to Franchisor such information and copies of documents pertaining to the Franchised Business as Franchisor may request.
- 8.12. Licenses. Franchisee is required to provide to us, within 10 days after you receive them and upon our request, true and correct copies of all state and other licenses related to the Franchised Business and correspondence related to renewals, expirations or denials thereof.
9. INSURANCE
- 9.1. Basic Requirements.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 FDD, Benjamin Franklin Plumbing franchisees must implement several security measures to protect data. Franchisees are required to implement industry-standard administrative, physical, and technical security measures and devices to protect data, including Personal Information, Customer Data, Confidential Information, intellectual property, or other data, from unauthorized access, acquisition, loss, destruction, disclosure, or transfer. Franchisees are solely responsible for protecting their franchised business from computer viruses, bugs, power disruptions, communication line disruptions, Internet access failures, Internet content failures, and attacks by hackers and other unauthorized intruders. Franchisees waive any claims against Benjamin Franklin Plumbing for disruptions, failures, or attacks. Franchisees must also use best efforts to verify that their suppliers, lenders, landlords, customers, and governmental agencies on which they rely are reasonably protected. This includes securing systems with firewalls, access code protection, anti-virus systems, and backup systems. In the event of a known or suspected security breach, franchisees must notify Benjamin Franklin Plumbing promptly and comply with applicable laws and any instructions from them regarding response to the breach.
Benjamin Franklin Plumbing franchisees must comply with applicable laws and the franchisor's requirements regarding the collection, use, processing, protection, integrity, transfer of, consumer access to, correction of, and deletion of Personal Information. Franchisees must ensure they collect Personal Information with express or implied consent of the consumer and provide a written privacy notice to consumers where required by law. Franchisees must also comply with the Payment Card Industry Data Security Standards (PCI/DSS) and implement the security requirements that the PCI Security Standards Council requires of a merchant that accepts payment by credit and/or debit cards, including completing PCI/DSS audits as required by the standards. However, compliance with PCI/DSS does not guarantee that a security breach will not occur, and any losses or expenses incurred by Benjamin Franklin Plumbing due to a security breach will be subject to indemnification under Section 20 of the agreement.
These requirements are typical in franchising, as franchisors need to protect customer data and maintain brand reputation. The franchisee bears the responsibility of securing their systems and customer data, and must indemnify Benjamin Franklin Plumbing for losses incurred due to security breaches. A prospective franchisee should carefully consider the costs and responsibilities associated with these security measures.