Does Better Blend license customer data back to the franchisee, and for what purpose?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- **2.
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, customer data collected by the Business, including data from the point-of-sale system (excluding employee data), is considered Confidential Information and belongs to Better Blend. The franchisee acknowledges this ownership.
This means that while franchisees collect customer data through their Better Blend location's operations, they do not own this data. Instead, Better Blend retains ownership and control. The franchisee is obligated to maintain the confidentiality of this data and can only use it to the extent necessary for operating the Business, adhering to Better Blend's prescribed security procedures.
This arrangement has several implications for a prospective Better Blend franchisee. They cannot use the collected customer data for any purpose not explicitly authorized by Better Blend, such as starting a competing business or sharing it with third parties. The franchisee must also report any unauthorized disclosure or use of this information. This obligation extends indefinitely, even after the franchise agreement terminates or expires.