Is a Carls Jr. franchisee allowed to 'sell' Consumer Information?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
- (2) Franchisee will retain, use, or disclose Consumer Information only for the specific business purposes specified in this Agreement, and not for any other commercial or noncommercial purpose;
- (3) Franchisee will not retain, use, or disclose Consumer Information outside of the direct business relationship between Franchisee and CJR;
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees are explicitly prohibited from selling or sharing consumer information. Carls Jr. owns all consumer information and can use it as they see fit, within legal boundaries, including sharing it with vendors or affiliates for marketing.
The franchisee's use of consumer information is limited to operating the franchised restaurant, adhering to the agreement, operational procedures, and all data privacy laws. Franchisees must also comply with Carls Jr.'s data privacy and security policies and implement security measures to protect consumer information. They are obligated to report any suspected data breaches immediately and cooperate with Carls Jr. in addressing such breaches.
Franchisees cannot sell or share consumer information, use it for purposes outside the agreement, or combine it with information from other sources, unless permitted by privacy laws. Subcontracting the processing of consumer information requires Carls Jr.'s approval and a written agreement ensuring the subcontractor adheres to the same restrictions as the franchisee.
Carls Jr. will inform franchisees of consumer requests related to data (like deletion or correction) and provide necessary information for compliance. Franchisees must then cooperate, providing requested information and making necessary changes to consumer data as directed by Carls Jr., unless an exception applies under the law. Franchisees must also provide Carls Jr. with all information to demonstrate compliance with these obligations and cooperate with audits to assess their adherence to these rules.