Who owns the customer data generated by the Bombs Away business?

According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising exclusively owns all customer data and other non-public data generated by the franchisee's business. This data is considered Confidential Information. However, Bombs Away Franchising licenses this data back to the franchisee without charge. The franchisee can only use this data in connection with their Bombs Away business during the term of the Franchise Agreement.

This means that while franchisees collect customer data through their daily operations, they do not own it. Bombs Away Franchising retains ownership and grants franchisees a limited license to use the data for business purposes. This is a common practice in franchising, allowing the franchisor to maintain control over valuable customer information and ensure consistency across the brand.

For a prospective Bombs Away franchisee, this clause has several implications. First, franchisees must understand that they cannot use the customer data for any purpose outside of operating their Bombs Away franchise. Second, upon termination of the franchise agreement, the franchisee loses the right to use the data. Finally, franchisees should ensure they have systems in place to properly collect and manage customer data in compliance with Bombs Away Franchising's requirements, as outlined in the Manual or other written directives.