Does Better Blend charge franchisees for the license to use customer data?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Confidential Information.** With respect to all Confidential Information, Guarantor shall (a) adhere to all security procedures prescribed by BBF for maintaining confidentiality, (b) disclose such information to its employees only to the extent necessary for the operation of the Business, (c) not use any such information in any other business or in any manner not specifically authorized or approved in writing by BBF, (d) exercise the highest degree of diligence and make every effort to maintain the confidentiality of all such information during and after the term of the Franchise Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure or use of Confidential Information.
Guarantor acknowledges that all Confidential Information is owned by BBF or its affiliates (except for Confidential Information which BBF licenses from another person or entity).
Guarantor
acknowledges that all customer data collected or generated by the Business and all data collected or generated by the point-of-sale system (other than data regarding employees) is Confidential Information belonging to BBF. This Section will survive the termination or expiration of the Franchise Agreement indefinitely.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees do not directly pay a fee for the license to use customer data. However, the FDD specifies that all customer data collected or generated by the Better Blend business, as well as data from the point-of-sale system (excluding employee data), is considered confidential information and belongs to Better Blend. This means that while franchisees don't pay a specific fee, they are obligated to protect and maintain the confidentiality of this data.
This has several implications for a prospective Better Blend franchisee. First, franchisees must adhere to all security procedures prescribed by Better Blend for maintaining the confidentiality of customer data. Second, franchisees can only disclose this information to their employees to the extent necessary for operating the business. Third, franchisees cannot use this information in any other business or manner not specifically authorized by Better Blend.
Furthermore, franchisees must exercise diligence in protecting this data both during and after the term of the franchise agreement. They are also prohibited from copying or reproducing any confidential information and must promptly report any unauthorized disclosure or use of it. While there's no explicit fee, the control and ownership of customer data remain with Better Blend, and franchisees must comply with stringent rules regarding its use and protection.