Who owns the customer data collected by a Buff City Soap franchise?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
rol with the named Person.
- (b) "Agreement" means this Operator's Confidentiality and Non-Compete between Agreement between Employer and Operator.
- (c) "Authorized Recipients" means employees of Employer or Franchisor with authorization to have the Confidential Information
- (d) "Competitive Business" means any retail establishment that, as determined by Franchisor, is the same as or substantially similar to the Makeries, including, without limitation, any personal body care product retail establishment or chain of retail establishments that feature products free of artificial detergents, surfactants, dyes, or harsh chemicals, or any retail establishment that has soaps, lotions, bath bombs and similar facial, body and hair care products collectively accounting for 25% or more of its average monthly gross sales for the retail establishment during the preceding 12 months (or, if the retail establishment has operated less than 12 months, the number of full calendar months of operation).
- (e) "Confidential Information" means any and all information, knowledge, know-how, trade secrets, trade dress, methodologies, techniques, procedures, applications and materials, in whatever form, used in or related to the System which Franchisor provides to Franchisee, or which Franchisee or its Affiliates or employees develop or have access to, in connection with this Agreement or the operation of a Buff City Soap makery hereunder, including, without limitation, the Standards; The Manuals; any components and ingredients, formulae and formulations applicable to Products; Franchisor's or its Affiliate's product and raw materials sourcing, pricing, manufacturing, inventory management and control, supply and distribution; technology, point of sale, and related computer software; advertising, marketing and promotional programs including gift card, loyalty and customer reward programs; customer data; financial data and statements; training and operational methodology content (including without limitation inventory and financial controls) and management programs; and any other information or data regarding the business of Franchisor or any of its Affiliates that would reasonably be considered the proprietary or confidential information of Franchisor or its Affiliates.
- (f) "Franchisor" means Buff City Soap Franchising, LLC.
- (g) "Franchise Agreement" means the Buff City Soap Franchise Agreement between Franchisor and Employer.
- (h) "Makery" means a Buff City Soap shop.
- (i) "Manuals" means Franchisor's operations and training manuals, and any other written directives related to the System, in whatever form and provided in whatever manner, as the same may be periodically amended and revised by Franchisor at it sole option, including the Standards, all bulletins, supplements and ancillary and additional manuals and directives established by Franchisor from time to time.
- (j) "Person" means any natural person or entity.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, customer data collected by a Buff City Soap makery is considered Confidential Information and is owned exclusively by the franchisor, Buff City Soap Franchising, LLC. The FDD defines "Confidential Information" to include customer data, among other things, related to the System that the Franchisor provides to the Franchisee, or that the Franchisee develops or has access to. This extends to any information from, about, or relating to customers of the Makery that identifies, or can be used to identify, contact, locate or be traced back to the specific Person to whom such information pertains, or from which identification or contact information of a Person can be derived. Customer Data includes any personally identifiable information, such as a Person's name, address, phone number, fax number, email address, passport number, financial profile, credit card information or any other information by which one is reasonably able to personally identify one or more Persons.
This means that while a franchisee operates a Buff City Soap location and collects customer information, they do not own that data. Buff City Soap Franchising, LLC retains sole ownership. Upon termination or cessation of employment, the franchisee must return all Confidential Information, including customer data, to the franchisor and retain no copies.
For a prospective franchisee, this has significant implications. While they can utilize customer data during the term of their franchise agreement to market within their protected area, they cannot take this data with them if they leave the Buff City Soap system. This is a common practice in franchising, as the brand wants to maintain control over customer relationships and ensure consistency across the system. Franchisees should be aware of this restriction and factor it into their business planning, particularly when considering the long-term value of their franchise.