Can Carls Jr. share Consumer Information with its affiliates?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
tions under this Agreement during the term hereof and subject to such instructions and restrictions as CJR may from time to time impose and in compliance with all data privacy, security and other applicable laws. "Consumer Information" means any identifiers (including name, address, phone numbers, usernames, birthdates and e-mail addresses), sales, transaction, loyalty and payment history, and all other information about or related to any customer or prospective customer, including any information deemed "personal information" or "personal data" under applicable law. As used in this Agreement, the term "customer" refers to any person or entity (i) whose information is collected by
any CJR system or application or included in any consumer or customer database, file or system owned or controlled by CJR, its parent, subsidiary or affiliate companies; (ii) who is included on any marketing or customer lists Franchisee develops or uses or any customer information generally collected and saved for any reason; (iii) who has purchased, purchases or intends to purchase products or services online, through an CJR application, or at the Franchised Restaurant; or (iv) who has been solicited to purchase any products or services at the Franchised Restaurant. CJR may use the Consumer Information as CJR deems appropriate, including sharing it with CJR's affiliates.
CJR owns all Consumer Information and may use the Consumer Information as it deems appropriate (subject to applicable law), including disclosing it to vendors or sharing it with its affiliates for cross-marketing or other purposes. Franchisee may only use Consumer Information for the purpose of operating the Franchised Restaurant to the extent permitted under this Agreement, including the OPM, during the term hereof and subject to such restrictions as CJR may from time to time impose and in compliance with all data privacy, security and other applicable laws. Without limiting the foregoing, Franchisee agrees to comply with applicable law in connection with Franchisee's collection, processing, storage and use of such Consumer Information, including, if required under applicable law, obtaining consents from individuals for CJR's and its affiliates' use of the Consumer Information. Franchisee must comply with all laws and regulations relating to data protection, privacy and security, including data breach response requirements ("Privacy Law(s)"), as well as data privacy and security policies, procedures and other requirements CJR may periodically establish. Franchisee must maintain reasonable, appropriate, and effective security controls to preserve the security, integrity, availability, confidentiality, and resilience of Consumer Information. Franchisee must notify CJR immediately of any suspected data breach at or in connection with the Franchised Restaurant or the business operated at the Franchised Restaurant. Franchisee must fully cooperate with CJR and its counsel in determining the most effective way to meet CJR's standards and policies pertaining to Privacy Laws, including those governing notification of a data breach. Franchisee is responsible for any financial losses it incurs or remedial actions that it must take as a result of breach of security or unauthorized access to Consumer Information in Franchisee's control or possession.
Without limiting the foregoing, Franchisee represents, warrants, and covenants that:
- (1) Franchisee will not "sell" or "share" (as defined under any Privacy Law) any Consumer Information or make Consumer Information available to any third party for valuable consideration;
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 Carls FDD, Carls owns all Consumer Information and may use it as it deems appropriate, subject to applicable law. This includes disclosing it to vendors or sharing it with its affiliates for cross-marketing or other purposes. Consumer Information includes identifiers such as names, addresses, phone numbers, usernames, birthdates, and e-mail addresses, as well as sales, transaction, loyalty, and payment history, and all other information about or related to any customer or prospective customer.
For a Carls franchisee, this means that while they collect consumer information in their daily operations, Carls retains ownership and control over that data. The franchisee's use of consumer information is limited to operating the franchised restaurant and must comply with Carls' instructions, restrictions, and all data privacy and security laws. Franchisees must also obtain consents from individuals for Carls and its affiliates' use of the Consumer Information, if required by applicable law.
This arrangement allows Carls to leverage consumer data across its entire system for marketing and strategic purposes. However, it also places a significant responsibility on the franchisee to protect consumer information and adhere to Carls' data privacy and security policies. Franchisees are responsible for any financial losses or remedial actions resulting from a data breach under their control. This includes notifying Carls immediately of any suspected data breach at the franchised restaurant and cooperating with Carls in responding to the breach.