What are the specific obligations of a Bombs Away franchisee regarding the compliance with data privacy regulations, considering the general obligations in Item 9 and the potential liabilities associated with non-compliance?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
by Bombs Away Franchising for such programs. Bombs Away Franchising may set minimum scores that Franchisee must receive from the public on internet review sites (such as Yelp or Google).
- 7.10 Payment Systems. Franchisee shall accept payment from customers in any form or manner designated by Bombs Away Franchising (which may include, for example, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems). Franchisee shall purchase or lease all equipment and enter into all business relationships necessary to accept payments as required by Bombs Away Franchising. Franchisee must at all times comply with payment card industry data security standards (PCI-DSS).
- 7.11 Gift Cards, Loyalty Programs, and Incentive Programs. At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Bombs Away Franchising, in the manner specified by Bombs Away Franchising in the Manual or otherwise in writing. Franchisee shall honor all valid gift cards and other pre-paid systems, regardless of whether issued by Franchisee or another Bombs Away business. Franchisee shall comply with all procedures and specifications of Bombs Away Franchising related to gift cards, certificates, and other pre-paid systems, or related to customer loyalty, membership/subscription, or customer incentive programs.
- 7.12 Maintenance and Repair. If the Location will be open to the public or used for meeting customers or potential customers, then Franchisee shall at all times keep the Business in a neat and clean condition, perform all appropriate maintenance, and keep all physical property in good repair. In addition, Franchisee shall promptly perform all work on the physical property of the Business as Bombs Away Franchising may prescribe from time to time.
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, franchisees must adhere to specific data security standards, particularly concerning payment information. Bombs Away requires franchisees to comply with payment card industry data security standards (PCI-DSS). This means franchisees must purchase or lease necessary equipment and establish business relationships to accept payments in the forms Bombs Away designates, such as cash, credit/debit cards, gift cards, electronic fund transfers, and mobile payment systems.
Bombs Away also emphasizes the ownership and handling of customer data. All customer data and non-public data generated by the franchisee's business is considered confidential information and is exclusively owned by Bombs Away. While Bombs Away licenses this data back to the franchisee for use in their business operations during the agreement term, franchisees must protect this data accordingly.
Franchisees are also obligated to participate in programs for obtaining customer evaluations and reviewing compliance with Bombs Away's system, which may include customer feedback systems, survey programs, and mystery shopping. Bombs Away shares the results of these programs with the franchisee and may set minimum score requirements. Furthermore, Bombs Away may take action to resolve customer complaints and require the franchisee to reimburse any expenses incurred. These measures collectively ensure that franchisees maintain data privacy and comply with Bombs Away's standards, though the FDD does not explicitly detail the liabilities associated with non-compliance with data privacy regulations.